# What is acceptable coefficient of variation?

## What is acceptable coefficient of variation?

Definition of CV: The coefficient of variation (CV) is the standard deviation divided by the mean. It is expressed by percentage (CV%). CV% = SD/mean. CV<10 is very good, 10-20 is good, 20-30 is acceptable, and CV>30 is not acceptable.

**How do you calculate CV%?**

The formula for the coefficient of variation is: Coefficient of Variation = (Standard Deviation / Mean) * 100. In symbols: CV = (SD/x̄) * 100. Multiplying the coefficient by 100 is an optional step to get a percentage, as opposed to a decimal.

### What is considered a high coefficient of variation?

The standard deviation of an exponential distribution is equal to its mean, so its coefficient of variation is equal to 1. Distributions with CV < 1 (such as an Erlang distribution) are considered low-variance, while those with CV > 1 (such as a hyper-exponential distribution) are considered high-variance.

**Can coefficient of variation be greater than 1?**

If the coefficient of variation is greater than 1, it shows relatively high variability in the data sets. On the flip side, a CV lower than 1 is considered to be low-variance.

## What does coefficient variation tell you?

The coefficient of variation shows the extent of variability of data in a sample in relation to the mean of the population. In finance, the coefficient of variation allows investors to determine how much volatility, or risk, is assumed in comparison to the amount of return expected from investments.

**How do you interpret coefficient of variation?**

The coefficient of variation (CV) is the ratio of the standard deviation to the mean. The higher the coefficient of variation, the greater the level of dispersion around the mean.

### What is CV value?

What is Cv value? The valve flow coefficient according to the JIS standard, represents the flow capacity in US gallons/minute of 60° F pure water when it is flowing through the valve with a pressure difference of 1 psi at the specified travel (operation range).

**What is CV percent?**

The coefficient of variation (CV) is the ratio of the standard deviation to the mean. The higher the coefficient of variation, the greater the level of dispersion around the mean. It is generally expressed as a percentage.

## Should coefficient of variation be high or low?

**Is a high coefficient of variation good?**

### Can a CV be greater than 100%?

All Answers (10) Yes, CV can exceed 1 (or 100%). This simply means that the standard deviation exceed the mean value.

**Is it better to have a higher or lower coefficient of variation?**

The lower the value of the coefficient of variation, the more precise the estimate.