Practice Flashcards
Flip to reveal answersRange formula?
Track your progress — Sign up free to save your progress and get smart review reminders based on spaced repetition.
All 15 Flashcards — Measures of dispersion
Sign up free to track progress and get spaced-repetition review schedules.
Question
Range formula?
Answer
Highest value − Lowest value. Simple but only uses two data points.
💡 Hint
Highest − lowest
Question
Low dispersion in sales means ___
Answer
Consistent, predictable revenue — easier to plan and budget.
💡 Hint
Predictable + easy to plan
Question
Range = highest − lowest (simple but ___). SD = average distance from mean (more ___)
Answer
Limited; reliable.
💡 Hint
Limited vs reliable
Question
High dispersion in sales means ___
Answer
Volatile, unpredictable revenue — harder to forecast and manage cash flow.
💡 Hint
Volatile + hard to forecast
Question
Low dispersion = consistent. High dispersion = ___
Answer
Variable and risky — harder to predict and manage.
💡 Hint
Variable + risky
Question
What does standard deviation measure?
Answer
How far each value is from the mean on average — uses ALL data points.
💡 Hint
Average distance from mean
Question
Low SD means ___; High SD means ___
Answer
Low = data clustered close to mean (consistent). High = data spread widely (variable).
💡 Hint
Clustered vs spread
Question
Low dispersion in quality means ___
Answer
Consistent products — good for reputation and customer trust.
💡 Hint
Consistent + trust
Question
You ___ SD in exams, you don't ___ it
Answer
Interpret; calculate.
💡 Hint
Interpret
Question
Range is limited because ___
Answer
It only uses two values (highest and lowest) — ignores everything in between and distorted by outliers.
💡 Hint
Only 2 values
Question
Two shops: both average $10k/week. Shop A: $9k-$11k. Shop B: $3k-$17k. Which is easier to manage?
Answer
Shop A — low spread means predictable, easier to plan staffing and stock.
💡 Hint
Shop A (low spread)
Question
Quick: Businesses prefer low dispersion because ___
Answer
It means consistency — easier to plan, budget and maintain quality.
💡 Hint
Consistency
Question
Businesses prefer ___ dispersion in sales and quality
Answer
Low — consistency is easier to manage and builds customer confidence.
💡 Hint
Low
Question
Quick: SD uses ___ data points; range uses only ___
Answer
All; two.
💡 Hint
All vs two
Question
You won't need to ___ SD in the exam — just ___
Answer
Calculate; understand what high or low SD means for the business.
💡 Hint
Interpret, not calculate
Read the notes
Full study notes for Measures of dispersion
Topic 6.7 hub
Descriptive statistics
More from Topic 6.7
All flashcards in this topic
BM exam skills
Paper structures & tips
Track your progress with spaced repetition
Sign up free — Aimnova tells you exactly which cards to review and when, so you remember everything before your IB exam.
Start Free