Podcast
Questions and Answers
The range is calculated by subtracting the highest value from the lowest value.
The range is calculated by subtracting the highest value from the lowest value.
True
The range provides a stable measure of dispersion because it considers all observations.
The range provides a stable measure of dispersion because it considers all observations.
False
As the data size increases, the range becomes more satisfactory in describing dispersion.
As the data size increases, the range becomes more satisfactory in describing dispersion.
False
Range is often used in statistical quality control due to its exceptional nature.
Range is often used in statistical quality control due to its exceptional nature.
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Stock prices and interest rates are examples of variables where range is commonly applied.
Stock prices and interest rates are examples of variables where range is commonly applied.
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Study Notes
Calculating Range
- To calculate the range, subtract the lowest value from the highest value.
- Example: If the lowest value is Rs. 125 and the highest value is Rs. 160, the range is Rs. 35.
Merits of Range
- Easy to calculate.
- Easy to understand.
Demerits of Range
- Not based on all observations.
- Lacks sampling stability, as a single observation can change the value of the range.
- Can be erratic, as it's based on only two extreme values, ignoring the remaining values.
- Can provide an incorrect description of dispersion.
- Becomes less satisfactory as the amount of data increases.
- Fails to indicate the usual spread of items.
Use of Range
- Most useful when extreme items are typical in terms of their range.
- Used in statistical quality control to detect exceptional items.
- Often used to describe stock prices and interest rates.
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Description
Learn about the concept of range in statistics, how to calculate it, as well as the merits and demerits associated with using range as a measure of dispersion.
