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06/23/2021

How do you evaluate the coefficient of variation?

How do you evaluate the coefficient of variation?

The formula for the coefficient of variation is: Coefficient of Variation = (Standard Deviation / Mean) * 100. ) * 100. Multiplying the coefficient by 100 is an optional step to get a percentage, as opposed to a decimal.

Which are characteristics of the coefficient of variation?

The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from one another.

What Does a higher coefficient of variation mean?

The coefficient of variation (CV) is the ratio of the standard deviation to the mean. The higher the coefficient of variation, the greater the level of dispersion around the mean. It is generally expressed as a percentage. The lower the value of the coefficient of variation, the more precise the estimate.

What is the investment’s coefficient of variation?

The coefficient of variation (COV) is the ratio of the standard deviation of a data set to the expected mean. Investors use it to determine whether the expected return of the investment is worth the degree of volatility, or the downside risk, that it may experience over time.

What is percentage of variation?

Use DDXL or another statistics package to find the variance of your Y-values and multiply that number by (number of pairs –1) so that you have SSY (sum of squares for Y). Calculate (1 – (SSE/SSY))*100 % as the percent of variation explained.