BUSS1020 Lecture Notes - Lecture 3: Skewness, Interquartile Range, Supreme Headquarters Allied Powers Europe

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1020
• Professor: Erick Li

Document Summary

Measures of variation: range, variance/standard deviation, coefficient of variation. Gives info on the spread/variability/dispersion of data values. Range: difference between largest and smallest [(r = x(largest)-x(smallest), highly sensitive to outliers. Ignores the way in which data is distributed. Average of squared deviations of values from the mean. Observations for random variable x i = the number of a single observation in sample (i is from 1 to n, n being the sample size/largest number) Standard deviation: most commonly used measure of variation, shows variation about the mean. Is the square root of the variance: has the same units as the original data. Both sample variance and standard deviation are measures of volatility. If values are all the same (no variation) all measures = 0: none of the volatility measures can be 0. Cv = (standard deviation / mean) x 100.