Page 2 - lesson notes 62 xi MOD variance & Lorenz curve
P. 2
Variance in probability theory and statistics is a way to measure how far
a set of number is spread out. Moreover, we can describe how much a
random variable differs from its expected value.
For comparing the dispersion of two or more series with different units,
it is necessary to compute the relative measures of standard deviation .
Coefficient of standard deviation = Standard deviation / mean
= ( / )
When two or more groups of similar data are to be compared with
respect to stability/uniformity/consistency / homogeneity, Coefficient of
variation is the most appropriate measures
