Coefficient of variation: Difference between revisions
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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: [Standard Deviation]/[Expected value]. | It is calculated as: [Standard Deviation]/[Expected value]. | ||
For example | |||
Coefficient of variation = $100m/$50m = 2.0. | For example; | ||
if the Standard deviation of the Net Present Value of a project = $100m, | |||
and the Expected Net Present Value = $50m, then: | |||
Coefficient of variation | |||
= $100m/$50m | |||
= 2.0. | |||
== See also == | == See also == | ||
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* [[Net present value]] | * [[Net present value]] | ||
* [[Standard deviation]] | * [[Standard deviation]] | ||
Revision as of 14:04, 20 September 2014
A measure of the variability of a distribution, expressed as a proportion of the expected value.
It is calculated as: [Standard Deviation]/[Expected value].
For example;
if the Standard deviation of the Net Present Value of a project = $100m,
and the Expected Net Present Value = $50m, then:
Coefficient of variation
= $100m/$50m
= 2.0.
