What does it mean if the coefficient of variation is high?
The coefficient of variation (CV) is the ratio of the standard deviation to the mean. The higher the coefficient of variation, the greater the level of dispersion around the mean. It is generally expressed as a percentage.
How do you find the maximum variance?
To determine the maximum theoretical standard variance from an average value specified for a value-bounded set, the squares must be maximized. If the range of values is from pa to pb , and the average value is m , the maximum variance can be calculated fairly simply. Which is simply the product of the two maximum gaps.
What does it mean to have a negative variance?
Negative variances are the unfavorable differences between two amounts, such as: The amount by which actual revenues were less than the budgeted revenues. The amount by which actual expenses were greater than the budgeted expenses. The amount by which current revenues were less than the previous year’s revenues.