1. What is Coefficient of Dispersion?

The Coefficient of Variation (CV) is a statistical measure of the relative dispersion of data points in a data series around the mean. It represents the ratio of the standard deviation to the mean and is often expressed as a percentage.

2. How Does the Calculator Work?

The calculator uses the Coefficient of Variation formula:

Where:

• \( \sigma \) — Standard Deviation
• \( \mu \) — Mean
• \( CV \) — Coefficient of Variation (%)

Explanation: The CV provides a standardized measure of dispersion that is independent of the unit of measurement, making it useful for comparing variability between different datasets.

3. Importance of Coefficient of Variation

Details: CV is particularly valuable when comparing the degree of variation from one data series to another, even if the means are drastically different from one another. It's widely used in fields like finance, quality control, and laboratory analysis.

4. Using the Calculator

Tips: Enter the mean and standard deviation values. Both values must be positive numbers (mean > 0, standard deviation ≥ 0). The result will be displayed as a percentage.

5. Frequently Asked Questions (FAQ)

Q1: What does a high CV indicate?
A: A high CV indicates greater variability relative to the mean, suggesting less consistency in the data.

Q2: What is considered a good CV value?
A: This depends on the context. In laboratory settings, CV < 10% is often considered acceptable, while in finance, higher values may be normal for certain investments.

Q3: When should I use CV instead of standard deviation?
A: Use CV when you need to compare variability between datasets with different units or significantly different means.

Q4: Are there limitations to using CV?
A: CV should not be used for interval scales that do not have a true zero point, and it can be misleading when the mean is close to zero.

Q5: Can CV be negative?
A: No, CV is always non-negative since both standard deviation and mean (when used in CV calculation) are positive values.