A statistical tool quantifies the dispersion or heterogeneity within categorical data. For example, it can measure the diversity of occupations within a specific population, revealing whether it is concentrated in a few areas or distributed across many. This measure is expressed as a numerical value, often normalized between 0 and 1, where higher values indicate greater diversity or variation.
Quantifying diversity in categorical variables is essential for various fields, including sociology, demography, and market research. This measurement enables researchers to analyze social structures, assess market segmentation, and track changes in population characteristics over time. Its historical roots lie in the need to move beyond simple frequency counts to understand the complexity of distributions, providing a more nuanced perspective than measures focusing solely on central tendency.
