VoseCofV | Vose Software


See also: Normalized measures of spread - the CofV





Example model

Returns the coefficient of variance of a distribution.

The normalized standard deviation (or Coefficient of Variance) is just the standard deviation divided by the mean i.e.:

It achieves two purposes:

  1. The standard deviation is given as a fraction of its mean. Using this statistic allows the spread of the distribution of a variable with a large mean and correspondingly large standard deviation to be compared more appropriately with the spread of the distribution of another variable with smaller mean and correspondingly smaller standard deviation.

  2. The standard deviation is now independent of its units. So, for example, the relative variability of the Euro: Hong Kong Dollar and US$: Sterling exchange rates can be compared.