Purchase Solution

What weakness of the standard deviation is overcome through the use of the coefficient of variation?

Not what you're looking for?

Ask Custom Question

What weakness of the standard deviation is overcome through the use of the coefficient of variation?

Purchase this Solution
Solution Summary

A short discussion on the weakness of standard deviation and how coefficient of variation is used.

Solution Preview

When using standard deviation, we know that the units of the standard deviation are the same as the population. In the original data, if we use X units then the standard deviation applies to those X units. However, if we use different populations, then the standard deviation makes it difficult to compare ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Expected return,standard deviation, coefficient of variation

    What is the coefficient of variation of this investment?

  • Coefficient of variation

    (Use the expected rate of return and the population standard deviation to calculate the coefficient of variation. Please show all calculations.

  • Calculating Coefficient of Variation

    (2.26919/(4-1)) =square root of (0.75640) =86.97% d) Coefficient of Variation=standard deviation/average return=86.97/72.31=1.20 e) Coefficient of Variation for stock is above 0.90, it should not be included.

  • Pricing and Coefficient of Variation

    The mean price of natural gas is $22.50 and the standard deviation is $5.25. a) Why should the coefficient of variation be used to compare the dispersion in the prices? b) Compute the coefficients of variation. What is your conclusion?

  • Step-wise Answer to Coefficient of Variation

    Thus, if we standard deviation as a measure of dispersion we cannot compare the two samples as their scales are different. To make the comparison scale free we make use of coefficient of variation.

  • coefficient of variation

    value e none of the above The coefficient of variation is the ratio of standard deviation to the expected value.

  • Statistics

    A measure often used when comparing the variation or variability or volatility of two samples is the COEFFICIENT OF VARIATION. The coefficient of variation is the ratio of the standard deviation to the mean of the sample.

  • Descriptive Statistics using STATDISK

    What characteristic of a data set is most important in determining standard deviation? The coefficient of variation measures standard deviation as percent of the mean. Which coefficient of variation is the largest? Which is the smallest?

  • Probability Distribution: Expected Return and Standard Deviation

    root (variance) = Square root (0.04322) = 20.79% Coefficient of Variation = Standard Deviation/Average Others are calculated the same way e.

View More Related Solutions