An average tells you where the data are centred and nothing about how far they stray. Two districts can share a mean income and still be very different places to live. This lesson builds the measures of spread from the simplest to the standard deviation, shows what shifting and rescaling do to each, and ends with how to combine groups.
Ashanagar is an invented district. The statistics lessons use it for every worked example, so you meet the same households again as the ideas build: first as a list of numbers, then as a spread, then as a population to sample from.
It has 60 households, each with a monthly income in rupees. Unless a page says otherwise, those 60 are the whole population, and a “sample” means a few of them drawn at random. Where a page needs two variables, it uses a smaller set of 12 households with the head’s years of schooling beside income.
The figures are illustrative, made up once and fixed. They are not official statistics.
Here are five households in each of two districts. Both have a mean income of ₹25,000 a month. Would you rather live in A or in B?
Both districts have a mean of ₹25,000. In A nobody is far from it. In B nobody is within ten thousand rupees of it except one household. The mean alone cannot tell them apart; a measure of spread can.
The mean cannot tell them apart; a measure of dispersion, or spread, can. That is not a technicality. Spread is how economists talk about inequality (how far incomes are from each other), risk (how far a return can stray from its average) and instability (how far prices swing around their usual level).
In Ashanagar the range of incomes is ₹61,500 (₹10,500 to ₹72,000), the quartiles are ₹20,000 and ₹38,375, so the interquartile range is ₹18,375 and the quartile deviation ₹9,187.50. The range is driven by the one household earning ₹72,000. The interquartile range is not.
All four above are absolute measures: they are in the units of the data, rupees here, so they cannot compare two different variables. A relative measure divides by a measure of size and has no units. The coefficient of quartile deviation, (Q3 − Q1) ÷ (Q3 + Q1), is one: with Q3 = 40 and Q1 = 20 it is 20 ÷ 60 = 0.33 (CUET 2021). The most important is the coefficient of variation, below. Hyderabad 2018 and JAM 2026 both ask which of several measures is relative.
The mean deviation is natural, but the absolute value in it is awkward to work with algebraically. Statisticians square the deviations instead, and the two main measures of spread both come from that. Each comes in two versions, one for a population (you have every value) and one for a sample (you have some, and want to estimate the population’s spread). The letters are different, so learn them as pairs.
The average squared distance from the mean. It is in squared units (₹², kg²), which is why we also use its square root.
The square root of the variance: a typical distance from the mean, in the same units as the data.
Both start the same way: subtract the mean from each value, square the result so that every term is positive and a value twice as far out counts four times as much, and add the squares up. Only the divisor differs, n for a population and n − 1 for a sample. The next section explains why.
The picture makes it concrete. Below, six markets quote an onion price. Each price’s distance from the mean is drawn as a square: its side is the deviation, so its area is the squared deviation. The variance is the average of the areas, and the dashed square at the end has exactly that area. Its side is the standard deviation. Drag a price out and watch the squares grow. The buttons under the picture switch between the two versions: divide by n when the six markets are the whole population, divide by n − 1 when they are only a sample of markets.
Blue squares are values above the mean, red below. A value twice as far from the mean makes a square four times as big, which is why one distant value moves the variance so much more than several close ones.
It is a typical distance from the mean, in the same units as the data: ₹ for incomes, kg for weights. A standard deviation of ₹13,000 says that households in Ashanagar are typically about ₹13,000 away from the average income, in one direction or the other.
Squaring all those deviations is slow. Expand the square and the variance becomes the mean of the squares minus the square of the mean:
A few facts that examiners lean on:
If the data are the whole population, divide by n. If they are a sample used to estimate the population’s spread, divide by n − 1:
CUET 2025 asks for the standard deviation of the sample 8, 7, 9. The mean is 8, the squared deviations are 0, 1, 1, and 2 ÷ (3 − 1) = 1, so s = 1.
Why n − 1? The deviations are measured from the sample’s own mean, which is the point that makes them as small as possible (Lesson 2). A sample’s values always sit a bit closer to their own mean than to the true population mean, so dividing by n gives an estimate that is too small, on average. Dividing by n − 1 corrects it exactly. A second way to see it: the deviations add to zero, so once n − 1 of them are known the last is fixed. Only n − 1 are free, and that count is called the degrees of freedom.
Remember the pairing: n for a population, n − 1 for a sample. The lab uses the sixty Ashanagar incomes as a population whose true variance σ² is known. Each draw takes a sample of n households at random and works out its variance both ways, once with the population formula (÷ n) and once with the sample formula (÷ n − 1). The bars show the average over 3,000 draws. Only the sample formula lands on σ².
With samples of 5, dividing by n gives estimates that average 80.6% of the truth. The shortfall is about (n − 1)/n = 80%, because a sample’s values sit closer to their own mean than to the population’s. Dividing by n − 1 corrects it, and the average comes to 100.8%. Draw again to see the figures wobble a little, but not the gap.
If we knew the true mean μ we would measure each deviation from it. Each (xi − μ)² has an average of σ², which is what σ² means, so the sum of n of them has an average of nσ². We do not know μ, so we measure from the sample mean x̄ instead. The question is what that costs.
Write xi − μ = (xi − x̄) + (x̄ − μ), square it and add over the sample:
The middle term has Σ(xi − x̄), and deviations from a sample’s own mean always add to zero, so it disappears:
Rearranged, Σ(xi − x̄)² = Σ(xi − μ)² − n(x̄ − μ)². The piece taken away is a square, so it is never negative: a sample sits closer to its own mean than to the population mean. Draw some samples and watch the blue part fall short of the whole by exactly the red piece.
The sample mean x̄ varies from sample to sample with variance σ² ÷ n (shown in the standard error derivation of the inference module). So n(x̄ − μ)² averages n × σ² ÷ n = σ². One σ², whatever the sample size.
To get something that averages σ² we divide by n − 1 and not by n. That is the divisor on the sample variance. It is also the meaning of degrees of freedom: n deviations from x̄ add to zero, so only n − 1 of them are free, and each free one carries one σ² on average.
This is the most frequently tested idea in the whole topic. What happens to each summary if every value x is replaced by c·x + k? Shifting by k moves the whole picture sideways. Multiplying by c stretches it. The mean and median follow both. The measures of spread notice only the stretch:
| Summary | After y = cx + k | Add k only | Multiply by c only |
|---|---|---|---|
| Mean, median | c · (old) + k | + k | × c |
| Range, quartile deviation, mean deviation, SD | |c| · (old) | unchanged | × |c| |
| Variance | c² · (old) | unchanged | × c² |
| Coefficient of variation | |c|·SD ÷ |c·mean + k| | changes | unchanged |
| Summary | Before | After | Rule |
|---|---|---|---|
| Mean | 25 | 60 changed | c · mean + k |
| Median | 23 | 56 changed | c · median + k |
| Range | 22 | 44 changed | |c| · range |
| Mean deviation | 5.33 | 10.67 changed | |c| · mean deviation |
| Standard deviation | 7.19 | 14.38 changed | |c| · SD |
| Variance | 51.67 | 206.67 changed | c² · variance |
| Coefficient of variation | 28.75% | 23.96% changed | |c| · SD ÷ |c · mean + k| |
Set k to 0 and only the multiplier is left: everything scales except the coefficient of variation. Set c to 1 and only k is left: the mean and median shift and the spread does not move at all, so the coefficient of variation falls when you add and rises when you subtract.
The questions are all one idea in different clothes:
Is wheat or rice more volatile in price? The standard deviation cannot say, because the two prices are on different levels: a ₹5 swing matters more on a ₹30 good than on a ₹100 one. The coefficient of variation divides the standard deviation by the mean:
A class with mean age 20 and variance 25 has a standard deviation of 5 and a CV of 25% (CUET 2018). Factory wages with a mean of ₹550 and a standard deviation of ₹110 give a CV of 20% (Hyderabad 2014). A CV of 22% on an average of 7 means a standard deviation of 0.22 × 7 = 1.54 (JNU 2021). The series with the smaller CV is the more consistent one. Ashanagar’s income CV is 46%.
Because it is a ratio, the CV is unchanged when every value is multiplied by the same number: change the currency from rupees to paise and it does not move (Hyderabad 2017). But it is changed by a shift. In a village of 100 households with mean income 400 and variance 25,600, the standard deviation is 160 and the CV is 40%. Raise every income by 100, and the mean becomes 500 while the standard deviation stays 160: the CV falls to 32%, which is a 20% decrease (Hyderabad 2020). Nothing about the households’ differences changed, and yet the coefficient did.
That behaviour is the reason for the warning in Lesson 1: the CV needs a true zero. Take the temperatures 20°C and 30°C: mean 25, standard deviation 5, CV 20%. The same two days in Fahrenheit are 68°F and 86°F: mean 77, standard deviation 9, CV 11.7%. One fact, two different “relative spreads”, because the zero of each scale is arbitrary. For income, price, quantity and other ratio-scale data the CV is safe.
A z-score or standard score re-expresses a value as how many standard deviations it lies from the mean: z = (x − x̄) ÷ s. Standardised values have mean 0 and standard deviation 1 whatever the original units were (JNU 2012), which makes different scales comparable. A mark of 72 in a paper with mean 60 and SD 8 has z = 1.5. A mark of 65 in a paper with mean 50 and SD 5 has z = 3. The second, though lower, is much further above its class.
Two groups with their own means and standard deviations make one bigger group. The combined mean is the weighted mean from Lesson 2. The combined variance has two parts: the spread within each group, and the spread between the groups, caused by their means being different. With group sizes ni, means x̄i and standard deviations σi, and di = x̄i − the combined mean:
The between-group term is why the combined variance can be bigger than both group variances when the group means are far apart. Two districts each with tight incomes but very different averages make a very unequal region.
| Situation | Use |
|---|---|
| A quick look; the extremes matter | Range |
| Outliers, skewed data, open-ended classes | Quartile deviation or interquartile range, with the median |
| Standard analysis; further calculation | Standard deviation, with the mean |
| Comparing series with different units or levels | Coefficient of variation (ratio-scale data only) |
| Comparing a value across different distributions | z-score |
CUET 2021 says the standard deviation is the best measure of dispersion, and it is the most widely used, because it uses every value and is the building block of everything later (correlation, regression, tests).
Two results relate the measures. For a normal distribution the standard deviation is the largest of the three and the quartile deviation the smallest: mean deviation ≈ 0.80σ and quartile deviation ≈ 0.67σ, so SD > MD > QD (Hyderabad 2016). For any distribution, Chebyshev’s inequality guarantees that at least 1 − 1/k² of the values lie within k standard deviations of the mean: at least 75% within two, and at least 89% within three. It is a floor, not a typical figure; for a normal distribution the shares are about 95% and 99.7%.
Definitions, one-step arithmetic and which-measure questions. Most CUET and Hyderabad questions sit here.
Grouped data, combined means, effects of shifting and scaling, and statement questions, up to JNU level.
This topic’s hardest questions, from the DSE entrance, are worked through in Lesson 10: Spread.
These are questions from the TestStop bank. A free account answers 10 a day, each with its worked solution; All-Access opens every set with no daily limit.