Question

Merits and demerits of coefficient of variation

Answer 1

Hii dear,

Coefficient of variation-
Coefficient of variation is standardized measure of dispersion of a probability/frequency distribution.
It's given by formula
Coefficient of variation= standard deviation / mean × 100

Merits-
1)It represents the ratio of the standard deviation to the mean
2)Compares variation from one distribution to another.
3)It's unitless and dimensionless variable

Demerits-
1)It can't be used directly to construct confidence intervals for mean
2)It approches to infinity when mean is close to zero

Thanks for asking...

Answer 2

Coefficient of variation: A standardized measure of a probability distribution that is often expressed as a percentage is defined as the coefficient of variation.

They can be measured as the ratio of the standard deviation to the mean.

Formula:

(Standard deviation / mean) * 100.

Merits:

• Relationship between standard deviation and mean
• No unit
• No dimension
• Compare distributions

Demerits:

• When the mean is 0, the coefficient of variation is infinity.
• Cannot find out the intervals of mean.
• Sensitive to small mean values.
• Cannot calculate logarithmic values.