Definition - What does Coefficient of Variation mean?
The coefficient of variation is a statistical term that indicates a measure of variability in distributed sets of data illustrating comparative analysis between the standard deviation (difference) and the means (average) of established values. Statisticians incorporate the coefficient of variation as a reliable testing method when performing cross-sectional surveys in studies. Sample groups are measured against the dominant criteria following the standard deviation and means model to garner the coefficient of variation percentage.
SureHire explains Coefficient of Variation
In statistics, the standard deviation and means format often reflects different factors involved that technicians take into consideration when observing for existing similarities or disparities in the results. For instance, the standard deviation between two test measures may demonstrate approximate or identical numerical values, but this can lead to false assumptions or erroneous judgment. The coefficient of variation serves as a percentage when calculating the standard deviation from the means because it covers the whole spectrum of different elements to provide technicians a valid answer.
Statisticians generally conduct test surveys that encompass a broad range of subjects, for example, alcohol and drug abuse. The mounting issue of addiction continues to affect individuals, families, and communities at large, resulting in exponential crime rates and economic setbacks due to impeded workforces. Statistical reports furnish useful information about rising drug trends linked to possible demographic factors including age group, employment status, relative income, and preferred drugs of choice. The National Institute on Drug Abuse (NIDA) campaigns against societal chemical dependency, employing statistical data and facts to raise universal awareness. Consistent statistics helps introduce soluble drug health and treatment programs tailored to combat legal and illegal substances, for example, alcohol, heroin, and marijuana.
The coefficient of variation is a statistical benchmark in distinguishing apparent coinciding sets of graphic data between the standard deviation and the means of proposed test measures. A percentage value facilitates interpretative analysis in terms of arriving at a more definitive conclusion.