Which measure of dispersion is the best and how - Economics - Measures of Dispersion

Question

Which measure of dispersion is the best and how?

Bhawna Madaan · Accepted Answer

Standard Deviation is the best measure of dispersion as it
satisfies the most essentials of the good measure of dispersion The
following points make Standard Deviation the best measure of
dispersion:
1 Most of the statistical theory is based on Standard Deviation
It helps to make comparison between variability of two or more sets
of data Also, Standard Deviation helps in testing the significance
of random samples and in regression and correlation analysis
2 It is based on the values of all the observations In other
words, Standard Deviation makes use of every item in a particular
distribution
3 Standard Deviation has a precise value and is a well-defined
and definite measure of dispersion That is, it is rigidly
defined
4 It is independent of the origin
5 It is widely used measure of dispersion as all data
distribution is nearer to the normal distribution
6 It enables algebraic treatment It has correct mathematical
processes in comparison to range, quartile deviation and mean
deviation