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DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A.KRISHNA KUMAR
Designation : Sr. Lecturer

Branch : Commercial & Computer


Practice
Institute : GPW ,Suryapet, Nalgonda dist.
Year/Semester : III Semester
Subject : Quantitative Techniques-1
Subject Code : CCP-303
Topic : Standard Deviation
Duration : 50 min.
Sub Topic : Coefficient of Variation and
Variance
Teaching Aids : PPT.

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Objectives

On the completion of the period, you would be


able to :

 Understand Coefficient of Variation


 Calculate Coefficient of Variation
 Calculate Variance

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Recap
FORMULA OF SD

 x 2

N
Where ∑x2 = Sum of the squares of the deviations taken

from AM
N = Number of items

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Recap

SD – ASSUMED MEAN - FORMULA

σ = √ ∑d2 / N – ( ∑d / N ) 2

Where ∑d2 = Total of squares of deviation from


assumed mean
∑d = Total of deviations from assumed mean.
N = Total number of items

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Co-efficient of Variation – Definition:

Co-efficient of variation is “the percentage variation in the


Mean, the Standard Deviation being treated as the total
variation in the Mean”

—Prof.Karl Pearson

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Co-efficient of Variation - Importance

 SD - an absolute measure of dispersion.

 It is expressed in terms of units in which the


original figures are collected and stated.

 Eg: heights and weights of students given in feet &


inches and pounds.

 SD given in different measures incomparable.

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Co-efficient of Variation - Importance

 Convert data given different measures to make it


relative measure of dispersion for comparison.

 For this, calculation of Co-efficient of Variation (CV)


necessary

 CV = SD / AM

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FORMULA

S tan dard Deviation


C.V  X 100
Mean

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Example 1

Calculate Co-efficient of Variation from the following


Standard Deviation = 148.2,
Arithmetic Mean = 919.167

Example 2
Calculate Co-efficient of Variation from the following

If X  49 &   37.06

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Solution 1

S tan dard Deviation


1) C.V  X 100
Mean
148.2
 X 100
919.167

Solution 2

2) C.V  X 100
X
37.06
 X 100  75.63
49
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VARIANCE - MEANING &
IMPORTANCE
 The variance is also called Mean Square Deviation.
 Variance is also called the Second Moment as the
deviations are raised to the second power.
 So the variance is symbolically expressed σ2

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Formula

 Variance = σ2 (Standard deviation square)

Example 3:
From the following data, calculate Variance, if SD = 9

Solution: Variance = σ2 (Standard Deviation square)


σ =9
Variance = 92

= 81

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Summary

Coefficient of
SD
Variation  X 100
Mean

Variance   2

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Quiz

1. What is the formula of Coefficient of


Variation?

S tan dard Deviataions


Ans : C.V  X 100
Mean

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Quiz

2. What is the formula of Variance?

Ans: SD2 (or) σ2.

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Frequently Asked Questions

1. In a given distribution AM = 20,


standard derivation =4.56, what is coefficient of
variation ?

2. From the data given below, state which series is more


variable
Series A : X = 42.14, σ = 14

Series B : X = 37.86, σ = 14.1

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Assignment
1. For a series, AM is 68 and SD is 3. Find out CV?

2. In a distribution, AM is 65 and SD is 2. What is its


CV?

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