Coefficient of Variation

The Coefficient of Variation explains the same thing which is explained by Standard Deviation. The advantage of using the coefficient of variation over Standard Deviation is that the Coefficient of variation is unit free. In more technical language, it is independent of scale whereas Standard Deviation is not independent of scale. It means one can compare different data with different units of measurement using Coefficient of Variation but we cannot do the same with Standard Deviation.

The formula for measuring the coefficient of variation for a population is:

\[CV = \frac{\sigma }{\mu }\]

The formula for measuring the coefficient of variation for a sample is:

\[CV = \frac{s}{{\bar X}}\]

Symbols have the usual meaning.

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