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Question -

Which measure of dispersion is the best and how?



Answer -

Standard Deviation is considered to be the best measure of dispersion and is therefore the most widely used measure of dispersion.

  1. It is based on all values and thus provides information about the complete series. Because of this reason, a change in even one value affects the value of standard deviation.
  2. It is independent of origin but not of scale.
  3. It is us’eful in advanced statistical calculations like comparison of variability in two data sets.
  4. It can be used in testing of hypothesis.
  5. It is capable of further algebraic treatment.

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