Question

Coefficient of variation can be defined as C.V = $\frac{\sigma }{x}\times 100$,$\overline{x}$ $\ne$ 0, $\sigma$ = standard deviation and $\overline{x}$ = mean

• A. True
• B. False

Answer 1

The correct option is A

True

Whenever we want to compare the variability of two series with same mean,which are measured in different units, we do not merely calculate the measures of dispersion but we require such measures which are independent of the units. The measure of variability which is independent of units is called coefficient of variation.

Coefficient of variation can also be described as ratio between standard deviation mean of given observation. It helps us to measure observations taken in two different units of measurement making it independent of units.

$\frac{\sigma }{x}\times 100$ C.V = $\frac{\text{Standard deviation}}{\text{Mean}}\times 100$