Statistical parameter in probability theory and statistics the coefficient of variation also known as relative standard deviation is a standardized measure of dispersion of a probability distribution or frequency distribution. N number of variables in the data series.
The cv or rsd is widely used in analytical chemistry to express the precision and repeatability of an.
Coefficient of variation formula statistics. Coefficient of variation is calculated using the formula given below coefficient of variation standard deviation mean coefficient of variation abc 7 98 14 0 57 coefficient of variation xyz 6 28 9 1 0 69. It is often expressed as a percentage and is defined as the ratio of the standard deviation σ displaystyle sigma to the mean μ displaystyle mu. Standard deviation from a statistics standpoint the standard deviation of a data set is a.
The metric is commonly used to compare the data dispersion between distinct series of data. Since coeff of variation is higher for project x than for project y hence despite the average profits being same project x is more risky. X mean of the data series.
By one of the most prominent statistician karl pearson. The formula for the coefficient of variation says cv standard deviation mean 100. Unlike the standard deviation.
X i i th random variable. Hence the value of cv depends on both the standard deviation and the mean. If the mean becomes zero then cv does not get a finite value.
In statistic the coefficient of variation formula cv also known as relative standard deviation rsd is a standardized measure of the dispersion of a probability distribution or frequency distribution. H e r e y y n 135 5 27 a n d σ y y 2 n σ y 880 5 176 13 26 c v y σ y y 100 13 25 27 100 49 11. When the value of the coefficient of variation is lower it means the data has less variability and high stability.
In reality the mean can be zero at times depending on the sample data. It can be further expressed as below coefficient of variation ni xi x 2 x. The coefficient of variation relative standard deviation is a statistical measure of the dispersion of data points around the mean.
The formula for the calculation of the coefficient of variation is derived using the mean and the standard deviation. Coefficient of variation formula standard deviation mean. Coefficient of variation of a data is obtained by dividing the standard deviation by the arithmetic it is usually expressed in terms of percentage.
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.