Lesson 4

Coefficent of Variation

Reporters:
Camarino, Marriane Marie
Labrador, Franco
Nacis, Gertrude
Solas, Danica Angella
Alcallaga, Jasmine Marie
Gener, Zhedyn Mei

SSC - 9 Rutherford
Scores Frequency Mid point f (Xm) Xm  x ( Xm  x )2
(f) (Xm)
1-5 5 3 15 - 10.5 110.25
6 - 10 2 8 16 - 5.5 30.25
11 - 15 12 13 156 - 0.5 0.25
16 - 20 7 18 126 4.5 20.25
21 - 25 4 23 92 9.5 90.25

i5  ( Xm  x)
f  f (Xm)  405  251.25
2
 30

Look for the mean: Solve for the standard deviation: Solve for the CV:

x
 f ( Xm)  2

 ( Xm  x) 2
x
f f CV 

x100

405 13.5
 251.25 
30 
30 2.89

X  13.5  2  8.375  4.671 100

  2.893 CV  467.1
A Coefficient of Variation (CV) is a statistical measure of the dispersion of data points in a
data series around the mean.
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 another, even
if the means are drastically different from one another.

Why coefficient of variation is used?

The most common use of the CV is to assess the precision technique. Also used as a
measure of variability when the standard deviation is proportional to the mean, and as the
means to compare variability of measurements made in different units.

The CV can also help you compare two completely different measurements. “How does
variation in height compare to weight? Or age? Or income?” The given variables are
measured on different scales and use different units, but the CV (which id dimensionless)
enables you to compare the variation of these variables.

Is it better to have a higher or lower CV?

CV allows you to determine how much the risk that you are assuming in comparison to
the amount of return you can expect from your investment. The lower the ratio of standard
deviation to mean return, the better your risk- return tradeoff.

COMPUTATION:

A researcher is comparing the two multiple-choice tests with different conditions. In the first
test, a typical multiple-choice test is administered. In the second test, alternative choices (i.e.
incorrect answers) are randomly assigned to test takers.

Regular Test Randomized Answers

Mean 59.9 44.8

Standard Deviation 10.2 12.7

Formula in finding CV= (SD/Mean)x100

CV= (SD/Mean)x100 CV= (SD/Mean)x100

= (10.2 / 59.9)x100 = (12.7 / 44.8)x100
= 0.1702838063439065 x 100 = 0.2834821428571429 x 100
= 17.02838063439065 or 17.03 = 28.34821428571429 or 28.35

Regular Tests Ramdomized Answers

Mean 59.9 44.8

Standard Deviation 10.2 12.7
Coefficient of Variation 17.03 28.35