Which are characteristic(s) of the coefficient of variation?
A) It adjusts for differences in the magnitude of means.
B) It has the same units of measurement as the observations.
C) It allows for direct comparisons across different data sets.
D) Both it adjusts for differences in the magnitude of means and it allows for direct comparisons across different data sets.

Question

Quizplus · Accepted Answer

The coefficient of variation is calculated as the standard deviation of a data set divided by its mean, and it expresses the standard deviation as a percentage of the mean. Therefore, it adjusts for differences in the magnitude of means (option A) and allows for direct comparisons across different data sets (option C). Additionally, it is a unitless ratio, so it doesn't have the same units of measurement as the observations (option B) which makes it easier to interpret and compare across different data sets. Thus, the best answer is D.

Which Are Characteristic(s) of the Coefficient of Variation