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#8. Problem 8 on page 63: Explain the usefulness of the coefficient of variation.

#8. Problem 8 on page 63: Explain the usefulness of the coefficient of variation.

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Coefficient of variation or COV is a measure of dispersion. It is numerically measured as the ratio of standard deviation to the mean. It is in relative terms hence it calculates relative risk. Higher the CV, higher is the dispersion about the mean. It is unit less which implies that it can compare different distributions whose scale of measures are different. It is useful in measuring fluctuations in the prices of stocks and securities in the market.

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#8. Problem 8 on page 63: Explain the usefulness of the coefficient of variation.
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