What Coefficient of variation is
The coefficient of variation (CV) is a measure of relative variability or dispersion of a set of data points. It is calculated as the ratio of the standard deviation to the mean of a given set of data. The coefficient of variation is used to compare variability of different datasets.
Steps for calculating coefficient of variation:
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Calculate the mean of the dataset.
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Calculate the standard deviation of the dataset.
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Divide the standard deviation by the mean.
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Multiply the result by 100 to get the coefficient of variation as a percentage.
Examples
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Coefficient of variation (CV) is used to compare the variability of data points in two different groups. For example, CV can be used to compare the variability of daily stock prices of two different companies.
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Coefficient of variation is used to gauge the reliability of a survey. For example, CV can be used to compare the variability of responses to a survey question between two different demographic groups.
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Coefficient of variation is often used to compare the variability of sample sizes in two different data sets. For example, CV can be used to compare the variability of sample sizes in an A/B test across two different groups.