Coefficient of variation: Difference between revisions
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''Statistics''. | |||
A measure of the variability of a distribution, expressed as a proportion of the expected value. | A measure of the variability of a distribution, expressed as a proportion of the expected value. | ||
Revision as of 14:00, 15 March 2018
Statistics.
A measure of the variability of a distribution, expressed as a proportion of the expected value.
It is calculated as:
Standard Deviation / Expected value
Example
The Standard deviation of the Net Present Value of a project = $100m.
The Expected Net Present Value = $50m.
Coefficient of variation is given by:
= $100m / $50m
= 2.0.
