Coefficient of Variation Calculator

Use this unified calculator to find the coefficient of variation (CV) for both ungrouped (raw) data and grouped (frequency distribution) data. Compare relative variability between datasets with different means or units.

Quick Start

Choose your data type, enter your values, and click Calculate:

Coefficient of Variation Calculator
Data Type Ungrouped (Raw Data) Grouped (Frequency Distribution)
Enter the X Values (Separated by comma,)
Type of Frequency Distribution DiscreteContinuous
Enter the Classes for X (Separated by comma,)
Enter the frequencies (f) (Separated by comma,)
Results
Number of Observations (N):
Sample Mean:
Sample Variance:
Sample Standard Deviation:
Coefficient of Variation (CV):

Understanding Coefficient of Variation

The coefficient of variation (CV) measures relative variability as a percentage:

  • ✅ Standardizes standard deviation relative to the mean
  • ✅ Allows comparison across datasets with different means or units
  • ✅ Unitless measure (pure percentage)
  • ✅ Particularly useful in business and quality control
  • ✅ Shows consistency relative to expected value

Why Use CV Instead of Standard Deviation?

Scenario Issue with SD CV Solution
Compare two products Different prices: $10 product vs $1000 product CV normalized by price
Compare measurements in different units SD changes with units CV remains consistent
Compare growth rates Raw SD misleading CV shows relative growth stability
Quality across scales Small SD might still be poor if mean is small CV shows actual consistency

Formula

Coefficient of Variation

$$CV = \frac{s_x}{\overline{x}} \times 100%$$

Where:

  • $s_x$ = Sample standard deviation
  • $\overline{x}$ = Sample mean
  • Result expressed as percentage (%)

Alternative (Decimal) Form

$$CV = \frac{s_x}{\overline{x}}$$

(Without multiplying by 100)


How to Use This Calculator

For Ungrouped (Raw) Data

Step 1: Select “Ungrouped (Raw Data)”

Step 2: Enter your data values separated by commas

Step 3: Click “Calculate”

Results will show:

  • Number of observations
  • Sample mean
  • Sample variance
  • Sample standard deviation
  • Coefficient of variation (%)

For Grouped (Frequency Distribution) Data

Step 1: Select “Grouped (Frequency Distribution)”

Step 2: Choose distribution type (Discrete or Continuous)

Step 3: Enter classes/values and frequencies

Step 4: Click “Calculate”


Interpretation Guide

CV Interpretation Scale

CV Value Consistency Risk Level Interpretation
CV < 15% Very high Very low Excellent consistency
15% - 30% High Low Good consistency
30% - 50% Moderate Moderate Acceptable variability
50% - 100% Low High High variability
CV > 100% Very low Very high Extreme inconsistency

Practical Examples

CV = 5%: Nearly perfect consistency (tight control) CV = 20%: Good consistency (acceptable for most processes) CV = 50%: High variability (needs attention) CV = 100%: Extreme variability (data as spread out as mean value)


Worked Examples

Example 1: Ungrouped Data - Product Quality

Data: Weight of 7 products (grams): 98, 100, 99, 101, 102, 99, 100

Assess quality consistency.

Solution:

Step 1: Calculate Mean

$$\overline{x} = \frac{98+100+99+101+102+99+100}{7} = \frac{699}{7} = 99.86$$

Step 2: Calculate Standard Deviation

Deviations from 99.86: -1.86, 0.14, -0.86, 1.14, 2.14, -0.86, 0.14

$$s_x = \sqrt{\frac{(-1.86)^2 + (0.14)^2 + … + (0.14)^2}{6}} = \sqrt{\frac{12.86}{6}} = 1.46$$

Step 3: Calculate CV

$$CV = \frac{1.46}{99.86} \times 100% = 1.46%$$

Answer: CV ≈ 1.46%

Interpretation: Excellent consistency! Products are nearly uniform in weight with minimal variation (< 2% relative variability).


Example 2: Ungrouped Data - Comparing Two Investments

Investment A: Returns: 5%, 6%, 4%, 7%, 5%

  • Mean = 5.4%
  • SD = 1.02%

Investment B: Returns: 50%, 60%, 40%, 70%, 50%

  • Mean = 54%
  • SD = 10.2%

Compare volatility.

Solution:

Investment A: $$CV_A = \frac{1.02}{5.4} \times 100% = 18.89%$$

Investment B: $$CV_B = \frac{10.2}{54} \times 100% = 18.89%$$

Answer: Both investments have identical CV!

Interpretation: Despite different absolute volatilities, both investments have the same relative volatility (18.89%). This shows why CV is crucial for comparing investments with different scales.


Example 3: Grouped Data (Discrete) - Sales Consistency

Data: Daily sales for 30 days

Sales ($1000s) 10 15 20 25 30
Days 3 8 10 6 3

Assess sales consistency.

Solution:

Step 1: Calculate Mean

$$\overline{x} = \frac{10(3)+15(8)+20(10)+25(6)+30(3)}{30} = \frac{600}{30} = 20$$

Step 2: Calculate Standard Deviation

Deviations: -10, -5, 0, 5, 10 (Deviations squared: 100, 25, 0, 25, 100)

$$s_x = \sqrt{\frac{100(3)+25(8)+0(10)+25(6)+100(3)}{29}} = \sqrt{\frac{1050}{29}} = 6.02$$

Step 3: Calculate CV

$$CV = \frac{6.02}{20} \times 100% = 30.1%$$

Answer: CV ≈ 30%

Interpretation: Good consistency with acceptable variability (CV in 15-30% range). Sales fluctuate about 30% around the mean value of $20,000.


Example 4: Grouped Data (Continuous) - Age Distribution

Data: Age distribution of 100 customers

Age Group 20-30 30-40 40-50 50-60
Frequency 15 35 30 20

Solution:

Step 1: Use Midpoints and Calculate Mean

Midpoint Frequency f×x f×x²
25 15 375 9,375
35 35 1,225 42,875
45 30 1,350 60,750
55 20 1,100 60,500
Total 100 4,050 173,500

$$\overline{x} = 4050/100 = 40.5$$

Step 2: Calculate Standard Deviation

$$s_x = \sqrt{\frac{173500 - \frac{4050^2}{100}}{99}} = \sqrt{\frac{173500 - 164025}{99}} = \sqrt{96.97} = 9.85$$

Step 3: Calculate CV

$$CV = \frac{9.85}{40.5} \times 100% = 24.3%$$

Answer: CV ≈ 24.3%

Interpretation: Good consistency in customer age distribution (CV in 15-30% range). Customer ages vary about 24% around the average of 40.5 years.


CV in Different Fields

Quality Control

  • CV < 5%: Process in excellent control
  • CV 5-15%: Process acceptable
  • CV > 15%: Process needs adjustment

Financial Analysis

  • CV < 25%: Low risk investment
  • CV 25-50%: Moderate risk
  • CV > 50%: High risk

Medical Research

  • CV < 10%: Highly precise measurements
  • CV 10-30%: Acceptable precision
  • CV > 30%: High measurement variability

Manufacturing

  • CV < 5%: Tight tolerance achieved
  • CV 5-10%: Normal tolerance
  • CV > 10%: Loose tolerance

Common Mistakes to Avoid

WRONG: Using standard deviation to compare datasets with different means ✓ RIGHT: Use CV to account for magnitude differences

WRONG: Calculating CV with negative or zero mean values ✓ RIGHT: CV requires positive mean; ensure mean > 0

WRONG: Comparing CV without understanding context ✓ RIGHT: 30% CV is good for sales, poor for precision manufacturing

WRONG: Assuming lower CV is always better ✓ RIGHT: Context matters;some variability may be natural or acceptable


Key Differences: Ungrouped vs. Grouped Data

Aspect Ungrouped Grouped
Precision Exact from raw values Approximate from midpoints
Calculation Direct Using class midpoints
Accuracy Complete information Some loss from grouping

When to Use CV

Advantages

  • ✅ Compare variability across different scales
  • ✅ Compare across different units ($/€, kg/lbs)
  • ✅ Unitless measure (pure percentage)
  • ✅ Intuitive interpretation
  • ✅ Essential for financial comparisons

Limitations

  • ❌ Cannot use with negative or zero means
  • ❌ Becomes unreliable with very small means
  • ❌ Different fields have different standards for “good” CV

Explore related variability measures:

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