Question

Calculate the coefficient of variation between these two-income distribution

(a) (2,2,4,6,8,20,30,40,60,100)

(b) (8,18,20,22,26,28,30,32,40,48)

Answer 1

Answer to the question:

Step 1: Find mean and standard deviation of the two samples a and b:

Mean of the sample a (denoted by X):

Standard Deviation of the sample a (denoted by X):

Applying the above formula we get the Standard deviation as:

Mean of the sample b (denoted by Y):

Standard Deviation of the sample b (denoted by Y):

Applying the above formula we get the Standard deviation as:

Step. 2: Devide the standard deviation by the mean of sample a and multiply it with 100:

The coefficient of variation of sample a is 37.22 %.

Step. 3: Devide the standard deviation by the mean of sample b and multiply it with 100:

The coefficient of variation of sample b is 41.77 %.

Despite of having same mean, the variability of data is more in the sample b (41.77 %) than in the sample a (37.22 %)

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