Coefficient of Variation
Understand the Problem
The question is asking for an explanation of the Coefficient of Variation (CV), which is a statistical measure used to assess the relative variability of a data set compared to its mean. It is commonly used to understand the dispersion of data in comparison to the average value.
Answer
The coefficient of variation is the ratio of the standard deviation to the mean.
The coefficient of variation (CV) is the ratio of the standard deviation to the mean and measures the relative dispersion of data points around the mean.
Answer for screen readers
The coefficient of variation (CV) is the ratio of the standard deviation to the mean and measures the relative dispersion of data points around the mean.
More Information
It's used in statistics to compare the degree of variation from one data series to another, even if the means are drastically different. It is dimensionless, meaning it is not affected by the scale of the data.
Tips
A common mistake is forgetting that the CV is not meaningful for data where the mean is close to zero because it can result in extremely high or undefined values.
Sources
- Coefficient of variation - Wikipedia - en.wikipedia.org
- Coefficient of Variation: Meaning and How to Use It - Investopedia - investopedia.com
- Coefficient of Variation - an overview | ScienceDirect Topics - sciencedirect.com
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