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Standard deviation

This topic has 1 reply, 2 voices, and was last updated 10 months ago by John Moffat.

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August 31, 2021 at 8:06 am #633597
johnbriane
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Dear sir

We need to calculate the coefficient of variation only because to know whether there is %change in the mean value happening again or not .

Because if the coefficient of variation is 0%
Then the same mean value will be predicted to be happening again

And if the coefficient of variation is 1% or more that denotes that

There might be a difference in the mean value in the next period

Am I correct sir
August 31, 2021 at 8:48 am #633614
John Moffat
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It is simply relating the two together for better comparison. If all the values in the distribution are high, then the mean and the standard deviation will both be high. If all the values in the distribution are low then the mean and the standard deviation will both be low.

The greater the coefficient of variation then the greater the spread about the mean. The lower the coefficient of variation then the lower the spread. 0% would mean there was no spread at all. (1% is of no special relevance).
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