Coefficient of variation: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Align presentation of formula with qualification material) |
imported>Doug Williamson (Standardise appearance of page.) |
||
| Line 1: | Line 1: | ||
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 | ||
Revision as of 13:19, 15 March 2015
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.
