MIS171 Lecture Notes - Lecture 3: Interquartile Range, Standard Deviation, Quartile
6 Sep 2018
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Topic 3: descriptive models part 1: univariate analysis. Measures of variation describe the spread or the variability of a set of data. Using measures of variation in conjunction with measures of central tendency gives a more complete numerical description of the data. The range of a data set is the difference between the largest and smallest data values. It ignores all data points except the two extremes of the data. It is very sensitive to the smallest and largest data values. Interquartile range of a data set is the difference between the third quartile and the first quartile (q3 q1). It is the range of the middle 50% of the data. It is not sensitive to extreme data values. Variance is expressed in squared units, whereas sd maintains the original unit and thus is preferred. Standard is the of individual values away from the mean. deviation deviation an estimate of average a popular deviation is measure particularly in financial analysis.
