Download App

Measures of Dispersion — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMeasures of Dispersion6 Marks
Question
Discuss merits and demerits of mean deviation.
✓

Answer

MERITS OF MEAN DEVIATION:
  1. As in case of X, every term is taken in account hence, it is certainly a better measure than other measures of dispersion i.e. Range, Percentile Range or Quartile Range.
  2. Mean deviation is extensively used in other fields such as Economics, Business, Commerce or any other field of such type.’
  3. It has least sampling fluctuations as compared to Range, Percentile Range and Quartile Deviation.
  4. When comparison is needed this is perhaps the best measure between two or more series.
  5. This calculation has its base upon measurement than an estimate.
  6. Mean Deviation is rigidly defined; one of the main focus point of any measure used for statistical Analysis.
  7. It we calculate it from median it is less affected by extreme terms.
  8. As it is based on the deviations about an average, it gives us better measure for comparison.
DEMERITS OF MEAN DEVIATION:
  1. This is mathematically incomplete because it ignores negative signs.
  2. If average is in fractions, it is difficult to compile M.D.
  3. It is not capable of further Algebraic Treatment.
  4. As for mean, open and series cannot be taken for the true result.
  5. If Range increases in case the sample increases, Average deviation also increases but not in the same ratio.
  6. For Sociological studies, it is almost not used.
  7. Its use is very limited in statistical work
  8. As it can be calculated from any average, it does not have certainty (i.e., it is not a well defined measure).

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "6 Marks Question" from Measures of Dispersion→Measures of Dispersion — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Calculate the coefficient of variation for the following data:
weight (kg.): 0-20 20-40 40-60 60-80 80-100
No. of Persons: 81 40 66 49 14
→
Explain with the help of diagrams, the effect of the following on demand for a good:
(i) Rise in income of its buyers.
(ii) Fall in income of its buyers.
→
Construct a pie diagram to represent the cost of construction of a house in Delhi.
Itens
Expenditure (in %)
Labour
25
Bricks
15
Cement
20
Steel
15
Timber
10
Supervision
15
→
Define price elasticity of demand for a commodity. What would be the shape of a demand curve of a commodity when its price elasticity of demand is:
(i) zero?
(ii) infinite?
→
What is meant by producer's equilibrium? When will a producer be in equilibrium in case of losses?
→
Given market equilibrium of a good. What is the effect of simultaneous decrease in both demand and supply of that good on its equilibrium price and quantity?
→
Explain the ‘exclusive’ and ‘inclusive’ methods used in classification of data.
→
Which of the following errors is more serious and why?
  1. Sampling error.
  2. Non-Sampling error.
→
What is secondary data? Explain different sources of secondary data.
→
Calculate the coefficient of rank correlation from the following data:
X
75
88
95
70
60
80
81
50
Y
120
134
150
115
110
140
142
100
→