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. | ||
It is calculated as: | It is calculated as: | ||
Standard Deviation / Expected value | |||
'''Example''' | |||
The Standard deviation of the Net Present Value of a project = $100m. | |||
Coefficient of variation | The Expected Net Present Value = $50m. | ||
Coefficient of variation is given by: | |||
= $100m / $50m | = $100m / $50m | ||
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* [[Net present value]] | * [[Net present value]] | ||
* [[Standard deviation]] | * [[Standard deviation]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 13:59, 21 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.
