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This formula is performed in Excel working with the key deviation function in the information established. It then calculates the indicate utilizing the presented functionality. As the coefficient of variation is the normal deviation divided via the imply, dividing the mobile consists of the key deviation by Yet another mobile that contains the suggest.
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It demonstrates the extent of variability of knowledge from the sample regarding the population’s indicate. In finance, the coefficient variation helps traders determine exactly how much volatility and threat are predicted when compared to the anticipated quantity having returned.
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