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Qualitative variation (QV) allows us to assess the degree of statistical dispersion in nominal distributions.
Variance is minimized if all cases belong to a single category and is maximized when all cases are qually distributed across all categories. The lower bound of qualitative variation is 0 - when all cases belong to a single category.
The larger the number of categories and the laeger the differences in frequencies across categories, the larger the variance.
Index of qualitative variation (IQV) is defined as a ratio of observed differences to maximum differences.
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