Coefficient Of Variation
The Coefficient of Variation (CV) is a statistical measure that expresses the ratio of the standard deviation to the mean of a dataset. It is often used to compare the degree of variation between different datasets, regardless of their units or scales. A higher CV indicates greater relative variability, while a lower CV suggests more consistency.
CV is particularly useful in fields like finance and quality control, where comparing the risk or variability of different investments or processes is essential. By providing a standardized measure of dispersion, the CV helps analysts make informed decisions based on the relative stability of the data involved.