Effective Range

Categories: Economics,

A group of observations may contain a limited number of outlying observations at either or both ends of the range. A very rough measure of dispersion may be obtained by taking the effective range, i.e. the range after these outlying values have been removed. The removal may have to be a matter of subjective judgement and inferences based on effective range are of somewhat doubtful value: in fact the term itself is not a good one.