What is the coefficient of variation?

How do you calculate the coefficient of variation?

Generally the variance can reflect the degree of fluctuation in the value of the random variable, but if in comparing the fluctuation size of two random variables, if the value of the random variable has a scale, or the value of the size of the problem of relativity, at this time the use of the variance of the comparison will produce an unreasonable phenomenon. So to compare the fluctuation size of two random variables, some occasions will use the coefficient of variation to compare, more reasonable. The larger the value of the coefficient of variation, the greater the variation.

Applications of the coefficient of variation:

(1) The coefficient of variation measures the change in a set of data, generally such as the stock market, for example.

(2) can detect the distribution of normal values, generally the coefficient of variation is greater than 15%, it is necessary to consider that the data may not be normal, should be eliminated. Less than 15% indicates that the data distribution is sufficiently uniform.

Using SPSSAU to quickly get the coefficient of variation

The results are as follows: