MBAQ-104: Quantitative Techniques – Unit 2
Objectives: the concept and significance of measuring variability; the concept of absolute and relative variation; the computation of several measures of variation, such as the range, quartile; deviation, average deviation and standard deviation and also their coefficients; the concept of skewness and its importance & the computation of coefficient of skewness.
Materials:
The relevant material is available here.
Questions:
- Discuss the important of measuring variability for managerial decision making.
- Review the advantages and disadvantages of each of the measures of variation.
- What is the concept of relative variation? What problem situations call for the use of relative variation in their solution?
- Distinguish between Karl Pearson’s and Bowley’s coefficient of skewness. Which one of these would you prefer and why?
- Compute the range and the quartile deviation for the following data:
| Monthly wage (Rs.) | No. of workers | Monthly wage (Rs.) | No. of workers |
| 700-800 | 28 | 1000-1100 | 30 |
| 800-900 | 32 | 1100-1200 | 25 |
| 900-1000 | 40 | 1200-1300 | 15 |