Measures of Central Tendency and DispersionMCQPYQ Jan. 21Question 3130 of 473
All Questions

The best statistical measure used for comparing two series is

Options

AMean absolute deviation
BRange
CCoefficient of variation
DStandard deviation
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Correct Answer

✅ Option c — Coefficient of variation

All Options:

  • AMean absolute deviation
  • BRange
  • CCoefficient of variation
  • DStandard deviation

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Detailed Solution & Explanation

**Analysis of each option:** - **Range:** Only considers two extreme values (max and min); not reliable for comparison. - **Mean Absolute Deviation (MAD):** Absolute measure of dispersion; affected by the scale of measurement, hence not directly comparable across different series. - **Standard Deviation (SD):** An absolute measure; cannot be used to compare series with different units or different means. - **Coefficient of Variation (CV):** A relative measure defined as: CV=σxˉ×100%CV = \frac{\sigma}{\bar{x}} \times 100\% CV is dimensionless (expressed as a percentage), making it ideal for comparing the variability (consistency) of two or more series that may have different units or different means. The series with the **lower CV** is said to be more consistent/stable. Hence, **Option C** is the correct answer.

About This Chapter: Measures of Central Tendency and Dispersion

Paper

Paper 3: Quantitative Aptitude

Weightage

12-15 Marks

Key Topics

Mean, Median, Mode, Range, Mean Deviation, Standard Deviation

The core foundation of Statistics. This chapter covers Mean (Arithmetic, Geometric, Harmonic), Median, Mode, and their properties. It also explores measures of spread like Range, Mean Deviation, Standard Deviation, and Quartile Deviation.

View Official ICAI Syllabus

Exam Strategy Tip

Do not just memorize formulas; ICAI loves asking about the mathematical properties (e.g., 'sum of deviations from the AM is always zero'). You can usually eliminate 2 options just by knowing the properties.

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