The formula for coefficient of variation is given below. Cv σ μ.
μ the mean.
Coefficient of variation formula for sample. A data set of 100 100 100 has constant values. Coefficient of variation formula standard deviation mean. Formula for coefficient of variation.
It can be further expressed as below coefficient of variation ni xi x 2 x. Its standard deviation is 0 and average is 100 giving the coefficient of variation as 0 100 0. I believe there is no need for an example of the calculation.
Its sample standard deviation is 10 and its average is 100 giving the coefficient of variation as 10 100 0 1. Coefficient of variation formula cv s xˉ cv s x where s is the standard deviation of a sample and x is the mean of the sample. For example in a commonly used spreadsheet processor users can apply the function stdev p to the required cells.
Mathematically the standard formula for the coefficient of variation is expressed in the following way. The cv is usually estimated from a sample but when the population standard deviation is known it can be used instead. The coefficient of variation is the ratio between the inverse of the mean and the standard deviation.
Anyone with a calculator in their hands will be able to do the job. A data set of 90 100 110 has more variability. Formula for coefficient of variation.
X mean of the data series. No doubt the cv coeffcieint of variation is very similar to the relative standard deviation rsd but the only prominent difference between both that the coefficient of variance can be negative while rsd is always positive. Coefficient of variation is calculated using the formula given below coefficient of variation standard deviation mean coefficient of variation a 22 982 61 2 0 38 coefficient of variation b 30 574 51 8 0 59.
N number of variables in the data series. X i i th random variable. Similar to the variance there is also population and sample standard deviation.
The resulting answer is the coefficient of variation. Where σ is the sample standard deviation and μ is the sample mean. However the low coefficient is not favorable when the average expected return is below zero.
The formula for the calculation of the coefficient of variation is derived using the mean and the standard deviation. Mathbf coefficient of variation frac standard deviation mean times 100 as per sample and population data type the formula for standard deviation may vary. The square root of the population variance and square root of the sample variance respectively.
Some spreadsheet processors calculate the coefficient of variation on their own without the above steps. σ the standard deviation.