Lambda Coefficient Calculator

Calculate Lambda Coefficient



Formula

To calculate the Lambda Coefficient (\(λ\)):

\[ λ = \frac{SSD}{N} \]

Where:

What is the Lambda Coefficient?

The lambda coefficient is a statistical measure used to assess the variability or dispersion within a data set. It is calculated by dividing the sum of squared deviations (SSD) by the total number of observations (N). The lambda coefficient provides insight into how much the individual data points deviate from the mean of the data set. A higher lambda coefficient indicates greater variability, while a lower lambda coefficient indicates less variability. This measure is commonly used in various fields such as economics, finance, and social sciences to analyze the distribution and spread of data.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ λ = \frac{200}{50} = 4 \]

The lambda coefficient is 4.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ λ = \frac{150}{30} = 5 \]

The lambda coefficient is 5.