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
1Answer
The coefficient of range is a measure of dispersion that indicates the relative spread of values in a dataset. It is calculated using the formula:
Given:
- Difference between largest and smallest value (Range) = 25
- Sum of largest and smallest value = 85
Step 1: Calculate the coefficient of range.
Interpretation: The coefficient of range is 0.294, indicating that the dataset has a low dispersion relative to its range. This means the values in the series are closely clustered around the central values, showing less variability in the data. A lower coefficient suggests that the data points are not widely spread, implying homogeneity in the dataset.
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