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
