EconomicsNEB 2082

Interpret the result of coefficient of range if difference and sum of largest and smallest value of series are 25 and 85 respectively. GROUP: B Short answer questions 8 × 5 = 40

1

Answer

The coefficient of range is a measure of dispersion that indicates the relative spread of data values. It is calculated using the formula:

Given:

  • Difference between the largest and smallest value (Range) = 25
  • Sum of the largest and smallest values = 85

Step-by-Step Calculation:

  1. Range is already given as 25.
  2. Sum of largest and smallest values = 85.
  3. Plug the values into the formula:

Interpretation:

The coefficient of range is 0.294, which indicates that the data values are moderately dispersed relative to their combined range and sum. A lower value (closer to 0) suggests less dispersion, while a higher value (closer to 1) suggests greater dispersion. Here, 0.294 implies that the data points are not too widely spread but still exhibit some variability.

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