Assam ASSEB HS Class 11-12 Economics study materials
Assam ASSEB HS Class 11-12 Economics study resources

Assam ASSEB HS Class 11-12 Economics: Measures of Central Tendency, Dispersion and Correlation

Assam ASSEB HS Class 11-12 Economics · Work through your exam, one topic at a time.

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Measures of Central Tendency, Dispersion and Correlation

The final domain covers averages, spread and association. Expect a computation of mean by step deviation, an interpretation of standard deviation or coefficient of variation, and a conceptual question on correlation.

Core rules

  • Mean can be computed by direct, assumed-mean or step-deviation methods; step deviation uses d′ = (X − A)/h and multiplies the result by h.
  • Median is the positional average, best for open-end classes; mode is the most frequent value. Empirical relation: Mode = 3 Median − 2 Mean.
  • Properties: Σ(X − X̄) = 0; the mean is affected by extreme values; the median is not.
  • Dispersion: range, quartile deviation, mean deviation, variance and standard deviation. SD is the positive square root of variance; SD is independent of a change of origin but changes with a change of scale.
  • Coefficient of variation = (SD/Mean) × 100; it compares variability across series with different means. A lower CV means greater consistency.
  • Correlation: Karl Pearson r = Σxy/(nσxσy), lying between −1 and +1. Spearman rank correlation rk = 1 − 6ΣD²/(n(n² − 1)), with ranks adjusted for ties.

Worked example

For 5, 10, 15, 20, 25 the mean is 15. Deviations are −10, −5, 0, 5, 10; squares sum to 250; variance = 250/5 = 50; SD = 7.07; CV = 7.07/15 × 100 ≈ 47.1%. A second series with mean 30 and SD 7.07 has CV ≈ 23.6%, so the first series is more variable and the second more consistent despite identical SD.

Traps that cost marks

  • Forgetting to multiply by h in the step-deviation method.
  • Computing median from inclusive classes without conversion.
  • Reporting variance as SD, or treating a high SD as high variability without checking the mean.
  • Concluding causation from a high r; correlation measures association only.