Measures of Dispersion in Business

Question 1

measures of variability

Answer 1

which are statistical procedures to describe how spread out the data
Range
Standard Deviation
Variance

Question 2

Range

Answer 2

defined as a single number representing the spread of the data

Question 3

Standard deviation

Answer 3

defined as a number representing how far from the average each score is
the measure of how closely all of the data in the data set surrounds the mean
helps to identify a normal distribution of data by comparing the distance of the average of each data point’s variance to the mean.

Question 4

Variance

Answer 4

defined as a number indicating how spread out the data is
seeks to find the parameter
direct measure of data variability
calculated as the average of the squared differences of all individual data points from the datasets mean value

Question 5

population

Answer 5

defined as the complete collection to be studied, like all the police officers in your city
the larger group that the sample

Question 6

sample

Answer 6

defined as a section of the population and would be a selection of police officers you are studying
a group to study

Question 7

VAR.P

Answer 7

Variance in a Population

Question 8

VAR.S

Answer 8

Variance in a Sample

Question 9

normal distribution of data

Answer 9

represented when the majority of the data is found close to the average of the set.

Question 10

continuous distribution

Answer 10

it is never a fixed value.

Question 11

normally distributed

Answer 11

verified to represent the population that is being studied.

the data tends towards a middle value with equal amounts to the left and right.

Question 12

outliers

Answer 12

extreme values

Question 13

A bell curve plot

Answer 13

a visual representation that the data is normally distributed.

Question 14

Chebyshev’s inequality

Answer 14

also known as Chebyshev’s theorem, is a statistical tool that measures dispersion in a data population

Question 15

z-score

Answer 15

is a measure of distance from the mean in terms of how many standard deviations it is removed from the mean.
a measurement of how far away a point is from the mean in terms of standard deviations

Question 16

To find the standard deviation

Answer 16

1. take the mean of all the values in the set
2. subtract the mean from each value
3. square the difference
4. find the mean of the sum of those differences
5. take the square root of that number

Question 17

Z-Score calculation

Answer 17

It is calculated by subtracting the value of the mean from the value of the point in question, then dividing by the standard deviation of the set

Question 18

Empirical rule

Answer 18

majority of data will be contained within these three standard deviations, a z-score of 1 will always contain 68% of the individual data points within a set. Likewise, a z-score of 2 will always contain 95%, while a z-score of 3 will always contain 99.7%

Question 19

Six Sigma

Answer 19

a data-driven approach to process improvement