Q:
# What Does Coefficient of Variation Measure?

The coefficient of variation is used in statistics to measure distribution. It can be found from the ratio of the standard deviation over the mean of a set of numbers to calculate both probability and frequency. When it is used in finance, the mean is considered the expected return.

Continue ReadingThe coefficient of variation can only be used for a number set on the ratio scale, which is commonly used in the physical sciences and engineering. In finance, it is used to measure the volatility of a financial risk. However, it cannot be used to calculate confidence intervals for the mean. The formula is written in mathematical notation as CV equals sigma divided by mu. When the coefficient of variation is expressed as a percentage, it may be called the relative standard deviation.

Learn more about Statistics-
Q:
## What Is a Box-and-Whisker Plot?

A: The box-and-whisker plot is a technique in statistics that graphically shows the distribution of a set of data involving the minimum and maximum values, as... Full Answer >Filed Under: -
Q:
## What Is a Z Test?

A: A Z-test is commonly used in statistics to determine whether a given hypothesis is true in a normal distribution or bell curve. Z-tests are optimal for sam... Full Answer >Filed Under: -
Q:
## What Does Standard Deviation Measure?

A: The standard deviation is a measure of the variation in a distribution or set of data. The term is used in probability and statistics and remains the most ... Full Answer >Filed Under: -
Q:
## What Does "r Squared" Mean?

A: The term "R-squared," or the coefficient of determination, explains the percent of variance away from a dependent variable and is expressed as a percentage... Full Answer >Filed Under: