Point 2 of 12 — Unit 4: Statistics — Measures of DispersionQuestion bank: 0 questions (0 with pictures)
024-2 Why do we need measures of dispersion?
Two data sets can share the same mean and still behave very differently: {10, 10, 10} and {1, 10, 19} both have mean 10, but the second is far more spread out.
A measure of dispersion quantifieshow scattered the values are around the centre, which is what consistency, risk and stability mean in real decisions.
Examples of decisions that need dispersion: choosing the more consistent player, the machine with steadier output, or the investment with less variability.
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