Coefficient of Variance
Example
The mean of the number of sales of cars over a 3-month period is 87, and the standard deviation is 5. The mean of the commissions is $5225, and the standard deviation is $773. Compare the variations of the two.
The coefficient of variation are:
\[\text{CVar}=\frac{s}{\bar{X}}\cdot 100=\frac{5}{87}\cdot 100=5.7\% \text{ (sales)}\]
\[\text{CVar}=\frac{773}{5225}\cdot 100=14.8\% \text{ (commissions)}\]