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Measures of Dispersion — Economics STD 11 Commerce — Question

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

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