Saturday 22 October 2016

Measures of Variation

Measures of Variation

Range
Range is the easiest way to identify the variation in the process, in simple terms range can be define as the difference between the highest and lowest value in a set.

Example  

Domino’s
6.5
6.6
6.7
6.8
6.8
6.9
7.0
7.1
7.2
7.3
Pizza Hut
4.2
5.4
5.8
6.2
6.7
7.2
7.2
8.5
9.3
10.0

Range for Domino’s pizza  :      7.3 - 6.5 = 0.8
Range for Pizza Hut pizza :     10.0 - 4.2 = 5.8

The much larger range in case of Pizza hut pizza shows that their process has a larger variation than the Domino’s

Standard deviation 

Example

Domino’s
6.5
6.6
6.7
6.8
6.8
6.9
7.0
7.1
7.2
7.3
Pizza Hut
4.2
5.4
5.8
6.2
6.7
7.2
7.2
8.5
9.3
10.0

S.NO
Domino’s
x – 
( x – x̅ )2
Pizza Hut
x – x̅
( x – x̅ )2
1
6.5
-0.39
0.1521
4.2
-2.85
8.1225
2
6.6
-0.29
0.0841
5.4
-1.65
2.7225
3
6.7
-0.19
0.0361
5.8
-1.25
1.5625
4
6.8
-0.09
0.0081
6.2
-0.85
0.7225
5
6.8
-0.09
0.0081
6.7
-0.35
0.1225
6
6.9
0.01
0.0001
7.2
0.15
0.0225
7
7.0
0.11
0.0121
7.2
0.15
0.0225
8
7.1
0.21
0.0441
8.5
1.45
2.1025
9
7.2
0.31
0.0961
9.3
2.25
5.6025
10
7.3
0.41
0.1681
10.0
2.95
8.7025
Total
68.9

0.609
70.5

29.165

X̅ = 68.9/10 = 6.89 (Domino’s)
X̅ = 70.5/10 = 7.05 (Pizza Hut)
n = 10



Standard deviation for Domino’s = 0.26
Standard deviation for Pizza Hut = 1.8

Domino’s Pizza (0.26 minutes) is lower than the standard deviation of Pizza hut pizza (1.8 minutes), in other words the variation in Domino’s pizza process is less than the variation in the Pizza Hut Pizza.

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