Analysis Of Frequency Distribution
Chapter Name : Statistics |
Sub Topic Code : 104_11_15_06_01 |
Topic Name : Analysis Of Frequency Distribution |
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Sub Topic Name : Analysis Of Frequency Distribution |
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Introduction
• Coefficient of variation is the percentage variation in mean. In other words, Coefficient of variation is defined as ratio of standard deviation to mean. • The value of coefficient of variation is calculated only for non zero mean.
Pre-Requisites:
Knowledge of measures of dispersion.
Activity:
You will observe that volume of balloon is more variable than weight of balloon.
Real Life Question:
A shopping mall has two sections with 50 and 65 employees respectively. Their average weekly wages are 500$ and 350$. The standard deviations are 7 and 9. Which section has larger variability in wages?
Key Words / FlashCards
| Key Words | Definitions (pref. in our own words) |
|---|---|
| Coefficient of variation | The measure of variability which is independent of units is called as coefficient of variation. |
| Measure of variability | It is a measure of how data is scattered or dispersed. |
Learning aids / Gadgets
| Gadgets | How it can be used |
|---|---|
| Balloon | Blow air in balloon. Suppose mean weight of balloon is 1 pound and its standard deviation is 0.9 pounds and its volume is 3.8 cubic feet and its standard deviation is 0.8 cubic feet. We can compare variations of weight and volume using coefficient of variation as weight and volume are two different units of measurements. |
Real life uses :
Coefficient of variation is used in financial business statistics, in scientific research.
Places to visit :
Calculate standard deviation of monthly income and the milk consumed by your family. You need to calculate coefficient of variation to know the variation as we have two different units. You will observe milk consumed is more variable than monthly income.
Practical examples around us
| Examples | Explainations |
|---|---|
| Stock market | Coefficient of variation is used in financial investment to determine risk factor associated with the stock. The greater variability in price of stock, the more the risk. |
What you learn in Theory:
Coefficient of variation is ratio of standard deviation to mean. It is determined in percentage.
What you learn in Practice:
In comparing wages bills of two sections of a shopping mall the greater coefficient of variation of a particular section indicates that section is less stable than the other.