Variation Coefficient, Statistics, Basic Statistics

Assignment Help:
Variation Coefficient

The standard deviation discussed above is an absolute measure of dispersion. The corresponding relative measure is known as the coefficient of variation. This measure developed by Karl Pearson is the most commonly used measure of relative variation. It is used in such problems where we want to compare the variability of two or more than two series. That series (or group) for which the coefficient of variation is greater is said to be more variable or conversely less consistent less uniform less stable or less homogeneous. On the other hand the series for which coefficient of variation is less is said to be less variable or more consistent more uniform more stable or more homogeneous coefficient of variation is denoted by C.V and is obtained as follows.

Coefficient of variation or C.V. = s = X x 100

It may be pointed out that although any measure of dispersion can be used in conjunction with any average in computing relative dispersion statisticians in fact almost always use the standard deviation as the measure of dispersion and the arithmetic mean as the average. When the relative dispersion is stated inters of the arithmetic mean and the standard deviation the resulting percentage is known as the coefficient of variation or coefficient of variability.

Related Discussions:- Variation Coefficient, Statistics

Bond calculation, Calculate the original price of the bond. Bonds were issu...

Calculate the original price of the bond. Bonds were issued at $200,000 of x% ten-year term bond at an effective annual interest rate (market rate) of x%. The bonds pay interest se

A congruential unit random number generator, Suppose the arrival times of p...

Suppose the arrival times of phone calls in a help centre follow a Poisson process with rate 20 per hour (so the inter-arrival times are independent exponential random variables).

Time series, discuss the nature and causes of the components of an economic...

discuss the nature and causes of the components of an economic time series?

Application of statistics, Mention the characteristics of Statistics. Expla...

Mention the characteristics of Statistics. Explain any two applications of Statistics

Spatial working memory , Preamble For the assignment you have been give...

Preamble For the assignment you have been given brief background details of a research project and you are required to produce a portfolio of short reports. Portfolios are to b

Find out the value to the firm and wacc , 1. HV Inc. is trying to determine...

1. HV Inc. is trying to determine the optimal time to undertake a product expansion. The project will require an initial investment of $15M and the firm has a WACC of 3%. The expan

What is Art collection , What is Art collection A personal perform of art...

What is Art collection A personal perform of art or number of products of unique graphics such as artwork, statues, craftwork or other elements generally determined as a perform

BALANCE SHEET , BALANCE SHEET A financial report that shows the resources,...

BALANCE SHEET A financial report that shows the resources, obligations, and stock of a business at a specified time frame in complying with usually recognized sales concepts (GAAP

Time series, Explain how you would decide whether to use the additive model...

Explain how you would decide whether to use the additive model or the multiplicative model to analyse a time series.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd