Coefficient of Variation

This relative measurement is developed by Karl Pearson and it is very commonly

used method to measure relative variation of two or more than two series (or
distributions).

It shows the relationship between standard deviation and arithmetic mean

expressed in terms of percentage. This measure is used to compare the uniformity,
consistency, reliability, stability and variability in two or more than two series.

The series having greater coefficient of variation is said to be less uniform, less
stable, and less consistent but more variable or vice-versa.

Standard Deviation
Coefficient of Variation   100
Arithmetic Mean

Example-

In a small business firm two typists are employed Typist-A and typist-B. Typist-A
types on average 30 pages per day with a standard deviation of 6 pages. Typist-B
types on average 45 pages per day with a standard deviation of 10 pages. Find out
which typist shows greater consistency in his output.

Solution-

Coefficien t of variation for typist - A   A 100% 

6
 100%  20%
X 30
A

Coefficien t of variation for typist - B   B  100% 

10
 100%  22.2%
45
X B

Above calculations shows that although typist-B types more pages than typist-A
but there is greater variation in his output as compared to that of typist-A. So, we
can say that typist-A is more consistent than typist-B.

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Example-

Below are given the number of runs scored by two batsmen in eight matches:

Batsman A 27 16 39 45 101 80 40 52
Batsman B 0 100 80 5 60 40 10 111

Solution –
2 2
x x y y
27 729 0 0
16 256 100 10000
39 1521 80 6400
45 2025 5 25
101 10201 60 3600
80 6400 40 1600
40 1600 10 100
52 2704 111 14641
8 8 8 8

 xi  400 x y y
2
 25436  416  36366
2
i i i
i 1 i 1 i 1 i 1

1 n 1 8 1
x  
n i 1 x i
 
8 i 1 x i
  400  50
8

1 n 2
A 
2
x i
x
n i 1
1 8 2
A 
2

8 i 1 xi x

 25436  50 
1
 
2
A
8
 A
 3179.5  2500

 A
 679.5

 A
 26.06

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   A  100% 
26.06
CV A
 100%  52.12%
50
x

1 n 1 8 1
y  
n i 1
y i
 
8 i 1
y i
  416  52
8

1 n 2
B y 
2

n i 1 i y
1 8 2
B y 
2

8 i 1 i y
 36366  52 
1
 
2
B
8
 B
 4545.75  2704

 B
 1841.75

 B
 42.91

  B  100% 
42.91
CV B
 100%  82.53%
52
y
Comparing the means of runs we find that Batsman-B is better run scorer than
Batsman-A. But since the coefficient of variation of batsman-A is less than the
coefficient of variation of batsman-B, so this is the clear indication that Batsman-A
is more consistent than batsman-B in scoring runs.

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