SSC CGL Exam  >  SSC CGL Videos  >  SSC CGL Tier 2 - Study Material, Online Tests, Previous Year  >  Coefficient of Variation - Measures of Dispersion, Business Mathematics & Statistics

Coefficient of Variation - Measures of Dispersion, Business Mathematics & Statistics Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

1365 videos|1312 docs|1010 tests

Top Courses for SSC CGL

FAQs on Coefficient of Variation - Measures of Dispersion, Business Mathematics & Statistics Video Lecture - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

1. What is the coefficient of variation and how is it calculated?
Ans. The coefficient of variation is a measure of relative variability or dispersion in a dataset. It is calculated by dividing the standard deviation of the dataset by its mean, and then multiplying the result by 100 to express it as a percentage. The formula for calculating the coefficient of variation is: Coefficient of Variation = (Standard Deviation / Mean) * 100
2. How is the coefficient of variation useful in comparing the variability of different datasets?
Ans. The coefficient of variation is useful in comparing the variability of different datasets because it takes into account the relative variability in relation to the mean. By using the coefficient of variation, we can compare the dispersion of datasets with different units of measurement or scales. It allows us to determine which dataset has a higher or lower relative variability, regardless of their means or standard deviations.
3. What does a high coefficient of variation indicate?
Ans. A high coefficient of variation indicates a high degree of relative variability or dispersion in a dataset. It suggests that the individual values within the dataset are widely spread out from the mean. In practical terms, a high coefficient of variation implies that the dataset has a large amount of variability, making it less consistent or stable compared to datasets with lower coefficients of variation.
4. How can the coefficient of variation be used in risk assessment or investment analysis?
Ans. The coefficient of variation can be used in risk assessment or investment analysis to assess the volatility or risk associated with different investments. A higher coefficient of variation indicates a higher degree of risk or volatility, while a lower coefficient of variation suggests lower risk or volatility. By comparing the coefficient of variation of different investments, investors can make informed decisions based on their risk tolerance and desired level of return.
5. Can the coefficient of variation be negative?
Ans. No, the coefficient of variation cannot be negative. It is always a positive value or zero. A coefficient of variation of zero indicates that there is no variability in the dataset, as the standard deviation is zero. However, it is important to note that the coefficient of variation may not always be a suitable measure of dispersion for datasets with very small means, as it may result in infinite or undefined values.
1365 videos|1312 docs|1010 tests
Explore Courses for SSC CGL exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Business Mathematics & Statistics Video Lecture | SSC CGL Tier 2 - Study Material

,

Important questions

,

shortcuts and tricks

,

past year papers

,

Coefficient of Variation - Measures of Dispersion

,

Exam

,

Business Mathematics & Statistics Video Lecture | SSC CGL Tier 2 - Study Material

,

Free

,

Business Mathematics & Statistics Video Lecture | SSC CGL Tier 2 - Study Material

,

Previous Year

,

Online Tests

,

Summary

,

Sample Paper

,

Coefficient of Variation - Measures of Dispersion

,

MCQs

,

Online Tests

,

video lectures

,

Coefficient of Variation - Measures of Dispersion

,

Extra Questions

,

ppt

,

study material

,

Previous Year Questions with Solutions

,

Objective type Questions

,

Semester Notes

,

practice quizzes

,

pdf

,

Online Tests

,

Previous Year

,

mock tests for examination

,

Previous Year

,

Viva Questions

;