Central Tendency And Dispersion In Descriptive Statistics
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Central Tendency And Dispersion In Descriptive Statistics
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We’ll look at measurement and the several levels at which we might use it to describe individual observations in this module. A datum is a term used in this context to describe an observation. A datum could be something like how many chats a person initiates per day or how many minutes a person spends watching television per day. Data refers to several observations of a characteristic in a population or sample. We are frequently interested in making statistical summary claims about a big and complex set of individual values for a variable once we gather it. We wish to use this data to characterize a group as a whole, such as a sample or a population. This explanation is the first step toward bridging the gap between our limited number of observations in the “measurement world” and the complexities of the “real world.” This is referred to as describing the distribution of a variable (Kachigan, 1986, p. 100).
Descriptive statistics help you do just that. They reflect or exemplify a particular aspect of a distribution. We may use descriptive statistics to do more than just describe a distribution. They can also be used for statistical inference, which allows you to extrapolate results from a small sample to the entire population. But that is a topic for later in this course. There are two types of descriptive statistics: measures of central tendency and measures of dispersion or variability. Both types of measurements concentrate on distinct aspects of distributions. The central tendency measurements characterize a distribution in terms of the data value that is most “common,” “typical,” or “average.” These measurements do not provide enough information to express everything we need to know about a distribution. We require further information about the distributions. A set of metrics known as measures of dispersion are used to convey this information.
There are various reasons why the descriptions of central tendency and dispersion should be considered simultaneously. Explain three reasons why it is beneficial to consider these measures together in the business environment for the sake of the debate. Give specific examples. This will be discussed in class.
Reference
S.K. Kachigan, S.K. Kachigan, S.K. Kachigan (1986). An interdisciplinary introduction to univariate and multivariate methods in statistical analysis. Radius Press, New York. (Chapters 4, 5, and 6, Central Tendency and Variation)
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