Coefficient of Variation

Standard Deviation is the most widely used method to measure the Dispersion of a set of data. It measures the deviation of elements of a population or dataset from its mean.
  • Standard Deviation is calculated as the positive square root of the mean of squared deviations from the mean.

Coefficient of Variation

  • For a given dataset, the Coefficient of Variation is the ratio of Standard Deviation to the Mean.
  • Coefficient of Variation or CV = Standard Deviation / Mean

Example 1: 

  • Let us take a sample: 2,5,8,10,12,15,18 and calculate is Coefficient of Variation
    • Solution: 
    • Its Mean = 10 and its Standard Deviation is 5.567
    • Now, Coefficient of Variation CV = Standard Deviation / Mean
    • CV = 5.567 / 10 = 0.5567

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