CV is more appropriate when we want to compare between two different data-sets (different units) which has less or more spread. Whereas standard deviation is helpful us to compare the spread similar types of data sets (same unit).
One possible example to that last question could be if you want to know where the abundance of a kind of phytoplankton varies more or is more stable. Since different groups of phytoplankton are found at different latitudes, and are affected by light and temperature, one could compare the CV of annual phytoplankton abundance of the equatorial region (more stable in terms of light and temperature during the year) vs the CV of annual phytoplankton abundance in high latitudes regions (with higher light and temperature variation). Cheers, Great video
Great video and a very lucid explanation. One answer to challenge question: The CV is useful in scenarios where there are a few outliers and the standard deviation could be skewed as a result. The CV would be useful in such case.
Great video. I am a sports fanatic. So I am going to use it to compare the two conferences in both the NBA & NFL. Also do the same for different seasons to compare how spread out the win loss records are, to example how much or lack of parity in the league between the two conferences.
I would say the age in months of children in 1st grade vs the age in months of children who are in 12th grade. Being a couple of months older in 1st grade gives children a huge advantage academically and athletically. That advantage disappears to some extent by the time the kids are older.
Practical applications of CV is when we are comparing data between two different scales. For example, comparing prices in USD and PKR or comparing prices of two completely different and unrelated products within the same currency.
@@jamiainaga5853 in websites domain means the part after the dot: .net .com .ge .ru .bg, so I'm guessing in this context domain infers a different country with different currency.
Man! I love you. Thanks for explaining it in the laymen's language and it is the best explanation I have ever gotten over what the hell coefficient of variation is. Thank you so much. I can't thank you enough.
With this video i finally understood what is CV. Whenever i used to see the SD of data similar to fuel price example, i always thinking what is that SD value is really means. There has to be some value by which i can understand the actual difference or variation between two data sets. And i got my answer in this video. It is coefficient of variation. Thank you so much...
CV may be applicable when considering which product deals to care about. If there isn't time to watch out for all the deals on essential goods, perhaps someone could find the CV's for a bunch of products they use and aim for the highest ones to budget more effectively.
My use case: I have a radioactive source used to calibrate instruments. I need to determine dose rates at a set distance using shields of various thickness to attenuate the dose rate. The measurements I take are integrated counts, at a set count time with 5 counts per attenuation. The instrument I'm using is a secondary standard calibrated to +/- 2% precision. I need to calculate the coefficient of variation for each set of 5 measurements to determine if the measurements vary greater than 2%. If greater than 2% i need to increase the count times and redo the measurements until I get a precision of less than 2%.
CV can be used while comparing annual returns distribution of say, NASDAQ and NIFTY (2 distinct sets of a portfolio) or say, Distribution of prices from its mean of, a meat market in China and a Dairy market in America.
CV is better for electronic component properties such as resistance, capacitance, etc. because the errors in a circuit will be proportional to the amount by which a value deviates from the nominal value as a ratio.
That last question was on my statistics exam and I came here for an answer because I had no clue. It was phrased more to make you think to use the COV for calculating the probability of an event happening like every exam question, which made it a bit more tricky. Using it to compare data sets makes a lot of sense, not actually doing calculations of probability with it.
Can we say, CV is helpful when we are comparing a set of apple with a set of oranges? CV would be the measure which gives us the comparable means which are relative to the characteristics of each set.
Comparing prices/consumption denominated in different currencies ...... Generalizing... Comparing the variation of any consumption given different unit of measurements
Thanks for the video...excellant presentation and teaching skill.....after taking ur class i think coefficient of variation is more appropriate when decision making is impossible by comparing the sd ie when sd is nearly equal or unit of mean at which sd is computed is different in the comparables....!!!!
In the cases of COVID 19 statistics, would the coefficient variation give us a better idea of how much the disease has spread within a total population, vs the standard deviation, which would not consider how many occurrences are being taken into account and may be skewed by outliers? With coefficient of variation, the number of occurrences is more relative than what the values of data are, themselves?
Comparing the variability of salaries between two companies: Suppose you want to compare the variability of salaries between two companies, Company A and Company B. The mean salary at Company A is $50,000, and the SD is $10,000, while the mean salary at Company B is $80,000, and the SD is $20,000. In this case, the SD would suggest that salaries at Company B are more variable, but this could be misleading. The CV would be a more appropriate measure because it would indicate that the relative variability of salaries is actually higher at Company A, where the CV is 20% (SD/mean), compared to Company B where the CV is 25%.
Actually. Std more easy to deeply understand about data variations than cov. Cov applied to compare 2 type with diverent categories that canot compare with std. Thanks for you video.Awesome explanation.
you are getting a sub my guy. i owe YOU a non-alcoholic beer can i get your opinion though? CV or SD when comparing variance of tree height in different areas?
is CV actually applicable to Example 1 where Y is shifted additively? Are CV for X and Y comparable when CV(X) = S/X and CV(Y) = S/(X+100) ? As opposed Y = X*B then CV for both remains at S/X
Hi Suppose I want to estimate the covariation of oil prices in the US and Vietnam. What would be the formula? Maybe you have made a video on this problem...
@zedstatistics mentioned in a previous video you said that the geometric mean was used to measure central tendency of rate/ratio data sets. If we want to measure the variance by rate/ratio, why wouldn't we use the geometric standard deviation? It seems like The coefficient of variance is arithmetic standard deviation but then manipulated to be expressed in terms of ratios. Would geometric standard deviation not be a purer measure of spread by ratio? Very curious about this. Thanks!
I think coefficient of variation in more appropriate than standared deviation when we dealing with the dataset which has different units (such as $ and INR) . That's I learn from this video.
I have recently got into the crypto market and studying statistics at same time. An example of application of CV is price variation of different currencies. They range from 0.0...1 - 100000
Not related to the challenge question but I'm just thinking that in addition to getting CV, you can also standardise the distributions and compare the sd?
CHALLENGE QUESTION - SCORING FLUCUTATION FOR NY SPORTS TEAM S/ NFL vs NBA- TOTAL POINTS SCORED EVERY WEEK(8 DAYS) FOR THE FIRST FIVE WEEKS OF THEIR REGULAR SEASON . NY - Teams - NFL NBA Week 1 - 40 491 Week 2 - 36 421 Week 3 - 51 471 Week 4 - 36 555 Week 5 - 42 381 Mean 41 463.8 Sd 6.16 66.70 CV 0.15 0.14 - COMPARED TO THE NFL, THE NBA PLAYS MORE GAMES AND SCORES MORE POINTS PER GAME -USING THE STANDARD DEVIATION WILL NOT GIVE AN ACCURATE VIEW OF THE FLUCTUATION IN POINTS SCORED BY EACH TEAM -WITH CONSIDERATION FOR THE PROPORTION OF EACH SAMPLE/DATASET, THE CV CALCULATES A MORE COMPARABLE RESULT -POINTS SCORED BY THE NFL VARY SLIGHTLY MORE THAN THE NBA
What about this: the mean and standard deviation of how many shoes per labor force can produce in a given area is known. Someone is planning to open up a factory as competition in the same area targeting 4 times as many shoes produced per worker. Should we assume the same standard deviation or the same coefficient of variation for the productivity of this new factory?
I'd say STD, hence, CoV should not be assumed the same unless factory consists of the same labor force the mean and STD is provided for. Since the 'someone' targets a higher shoe production, implies 'someone' is going to use a better means of production with its own new standard deviation.
According to what can we know that standard deviation is high or low? if it is close to zero or small number in this case standard deviation is high? Thanks
School going population between Namibia vs Nigeria. Namibia is sparsely populated and Nigeria is densely populated. The SD and mean is going to be different. But CV is probably going to be the same.
Comparing stock market indices of different countries or thematic indices or sectoral indices of the same countries. We could also compare the fluctuations of different mutual funds since they tend to have different NAVs. Thanks for the nice explanation!
Thank you for the great explanation! I would like to ask: would it be accurate to say that the CV is a measurement of how varied a data set is for the scale that it has?
Thanks for the video. The explanation was great! My 2 cents on how/when to use CV. So, I've been sitting here working through some examples in my text, and I guess it comes down to when you are trying to compare or things that could be relative to their respective domains. One example, Annual rainfall of US farmland ( unit of measure: inches) versus Price of US Farmland (unit of measure: USD). Which one has more variability? Another, which one is faster in a 0-60 race, relative to their price, a Kia Spectra or a Porche 911? Though, I haven't done that calculation, I bet it would be a good example of when to use CV. I look forward to your feedback.
Sounds to me like you're implying that the coefficient of variation allows us to compare anything to anything, since the units would cancel out? CV for the planet distance away from the sun vs CV of feet size in the world is totally legit to compare?
CV is more appropriate when we want to compare between two different data-sets (different units) which has less or more spread. Whereas standard deviation is helpful us to compare the spread similar types of data sets (same unit).
you are awesome bro!
Great explanation!
well said
Thank you!
Thank you!
COV is useful in cases where we have different units for comparison like weights in pound and kg.
P. S. Your content on Statistics is amazing.
Your video of linear regression was extremely helpful for me. Can u do series of video on logistic regression same way as linear regression.
One possible example to that last question could be if you want to know where the abundance of a kind of phytoplankton varies more or is more stable. Since different groups of phytoplankton are found at different latitudes, and are affected by light and temperature, one could compare the CV of annual phytoplankton abundance of the equatorial region (more stable in terms of light and temperature during the year) vs the CV of annual phytoplankton abundance in high latitudes regions (with higher light and temperature variation).
Cheers,
Great video
Great video and a very lucid explanation. One answer to challenge question: The CV is useful in scenarios where there are a few outliers and the standard deviation could be skewed as a result. The CV would be useful in such case.
Great video.
I am a sports fanatic. So I am going to use it to compare the two conferences in both the NBA & NFL. Also do the same for different seasons to compare how spread out the win loss records are, to example how much or lack of parity in the league between the two conferences.
I would say the age in months of children in 1st grade vs the age in months of children who are in 12th grade. Being a couple of months older in 1st grade gives children a huge advantage academically and athletically. That advantage disappears to some extent by the time the kids are older.
Practical applications of CV is when we are comparing data between two different scales. For example, comparing prices in USD and PKR or comparing prices of two completely different and unrelated products within the same currency.
Woah nice intuition
CV is more useful when comparing salaries for people with different domains
Domain meaning?
@@jamiainaga5853 in websites domain means the part after the dot: .net .com .ge .ru .bg, so I'm guessing in this context domain infers a different country with different currency.
In day trading, financial market, CV is better measure of risk
Majid Ikram thanks !
can you explain this thing please
This video was much more helpful at explaining this concept than my textbook! Thank you!
To compare changes in stock prices of 2 different stocks - use CoV instead of sd
Man! I love you. Thanks for explaining it in the laymen's language and it is the best explanation I have ever gotten over what the hell coefficient of variation is. Thank you so much. I can't thank you enough.
Wow! This course is actually making me feel statistics. Thank you so much for the wonderfully intuitive learning experience.
With this video i finally understood what is CV. Whenever i used to see the SD of data similar to fuel price example, i always thinking what is that SD value is really means. There has to be some value by which i can understand the actual difference or variation between two data sets. And i got my answer in this video. It is coefficient of variation. Thank you so much...
CV may be applicable when considering which product deals to care about. If there isn't time to watch out for all the deals on essential goods, perhaps someone could find the CV's for a bunch of products they use and aim for the highest ones to budget more effectively.
You could use this in comparison of the test scores and determining the validity of national testing in schools across different cultures.
My use case:
I have a radioactive source used to calibrate instruments. I need to determine dose rates at a set distance using shields of various thickness to attenuate the dose rate.
The measurements I take are integrated counts, at a set count time with 5 counts per attenuation.
The instrument I'm using is a secondary standard calibrated to +/- 2% precision.
I need to calculate the coefficient of variation for each set of 5 measurements to determine if the measurements vary greater than 2%.
If greater than 2% i need to increase the count times and redo the measurements until I get a precision of less than 2%.
The Clearest Explanation. Thanks
CV can be used while comparing annual returns distribution of say, NASDAQ and NIFTY (2 distinct sets of a portfolio) or say, Distribution of prices from its mean of, a meat market in China and a Dairy market in America.
CV is better for electronic component properties such as resistance, capacitance, etc. because the errors in a circuit will be proportional to the amount by which a value deviates from the nominal value as a ratio.
That last question was on my statistics exam and I came here for an answer because I had no clue. It was phrased more to make you think to use the COV for calculating the probability of an event happening like every exam question, which made it a bit more tricky. Using it to compare data sets makes a lot of sense, not actually doing calculations of probability with it.
Can we say, CV is helpful when we are comparing a set of apple with a set of oranges? CV would be the measure which gives us the comparable means which are relative to the characteristics of each set.
Comparing prices/consumption denominated in different currencies ...... Generalizing... Comparing the variation of any consumption given different unit of measurements
Thank you so much! This is so helpful. I have to go over descriptive statistics for a test I’m taking, so it’s awesome you put it into a series:))
Thanks for the video...excellant presentation and teaching skill.....after taking ur class i think coefficient of variation is more appropriate when decision making is impossible by comparing the sd ie when sd is nearly equal or unit of mean at which sd is computed is different in the comparables....!!!!
Purchase price parity scenarios of various commodities could be one scenario where the coefficient of variation could fit in.
In the cases of COVID 19 statistics, would the coefficient variation give us a better idea of how much the disease has spread within a total population, vs the standard deviation, which would not consider how many occurrences are being taken into account and may be skewed by outliers? With coefficient of variation, the number of occurrences is more relative than what the values of data are, themselves?
You have explained very easy way. Especially your examples very nice to understand. Thanks a lot sir.
Comparing the variability of salaries between two companies:
Suppose you want to compare the variability of salaries between two companies, Company A and Company B. The mean salary at Company A is $50,000, and the SD is $10,000, while the mean salary at Company B is $80,000, and the SD is $20,000. In this case, the SD would suggest that salaries at Company B are more variable, but this could be misleading. The CV would be a more appropriate measure because it would indicate that the relative variability of salaries is actually higher at Company A, where the CV is 20% (SD/mean), compared to Company B where the CV is 25%.
Actually. Std more easy to deeply understand about data variations than cov.
Cov applied to compare 2 type with diverent categories that canot compare with std.
Thanks for you video.Awesome explanation.
the whole course is very useful when you are applying it to resource estimation and analyzing databases.
An example for usage of CV is comparing the variation in flight times for 2 different routes.
Explain me more about autocorrelation and how it can be used ana data analysis
Really helpful video and what I understood is It basically measure the degree of deviation
CV is usefull for comparing two different types of meassurement types/devices and trying to decide wich is more accurate.
Excellent explanation for a new learner like me. ❤❤❤
CV can help in comparing fluctuations of 2 different production plants of the same commodity
Fantastic video thank you: What varies more temperature or rainfall during the month of July?
If you want to compare temperature fluctuation in Siberia (measured in Celsius) and California (measured in Fahrenheit)
you are getting a sub my guy. i owe YOU a non-alcoholic beer
can i get your opinion though? CV or SD when comparing variance of tree height in different areas?
is CV actually applicable to Example 1 where Y is shifted additively? Are CV for X and Y comparable when CV(X) = S/X and CV(Y) = S/(X+100) ? As opposed Y = X*B then CV for both remains at S/X
Cv is appropriate when we want to compare the datasets of different lengths (number of data in each)?
Great video, my CV is greater than 100.
please how can that be explained?
this is also useful if you are measuring volatility for different products with different price ranges
At last, no other video put this good enough for understanding
Such a simple explanation!
Can be used to compare any commodity's price across different regions
Great explanation. Really appreciated that, thank you.
Really good video. Very informative!
Hi
Suppose I want to estimate the covariation of oil prices in the US and Vietnam. What would be the formula? Maybe you have made a video on this problem...
@zedstatistics mentioned in a previous video you said that the geometric mean was used to measure central tendency of rate/ratio data sets. If we want to measure the variance by rate/ratio, why wouldn't we use the geometric standard deviation? It seems like The coefficient of variance is arithmetic standard deviation but then manipulated to be expressed in terms of ratios. Would geometric standard deviation not be a purer measure of spread by ratio? Very curious about this. Thanks!
Hi!! What is the cenrio to apply CV in measuring price inflation?
I think coefficient of variation in more appropriate than standared deviation when we dealing with the dataset which has different units
(such as $ and INR) .
That's I learn from this video.
Sorry how do you calculate standard deviation I get SD=0.14 for USA prices?
The spread of CV of growth stocks vs value stocks has been widening.
I think we could prefer coefficient of variation to standard deviation when we have a lot of atypical values?
That's wonderful explanation
I have recently got into the crypto market and studying statistics at same time. An example of application of CV is price variation of different currencies. They range from 0.0...1 - 100000
Very good video. I like that you talk slowely ;)
6:40 Great lad! Promoting public health.😇
Zed also sounds like a radio broadcaster.
thank you for this valuable lesson
Great explanation
Not related to the challenge question but I'm just thinking that in addition to getting CV, you can also standardise the distributions and compare the sd?
at 5:32 why don't we just change all the prices into dollars?
CHALLENGE QUESTION - SCORING FLUCUTATION FOR NY SPORTS TEAM S/
NFL vs NBA-
TOTAL POINTS SCORED EVERY WEEK(8 DAYS) FOR THE FIRST FIVE WEEKS OF THEIR REGULAR SEASON .
NY -
Teams - NFL NBA
Week 1 - 40 491
Week 2 - 36 421
Week 3 - 51 471
Week 4 - 36 555
Week 5 - 42 381
Mean 41 463.8
Sd 6.16 66.70
CV 0.15 0.14
- COMPARED TO THE NFL, THE NBA PLAYS MORE GAMES AND SCORES MORE POINTS PER GAME
-USING THE STANDARD DEVIATION WILL NOT GIVE AN ACCURATE VIEW OF THE FLUCTUATION IN POINTS SCORED BY EACH TEAM
-WITH CONSIDERATION FOR THE PROPORTION OF EACH SAMPLE/DATASET, THE CV CALCULATES A MORE COMPARABLE RESULT
-POINTS SCORED BY THE NFL VARY SLIGHTLY MORE THAN THE NBA
What about this: the mean and standard deviation of how many shoes per labor force can produce in a given area is known. Someone is planning to open up a factory as competition in the same area targeting 4 times as many shoes produced per worker. Should we assume the same standard deviation or the same coefficient of variation for the productivity of this new factory?
I'd say STD, hence, CoV should not be assumed the same unless factory consists of the same labor force the mean and STD is provided for. Since the 'someone' targets a higher shoe production, implies 'someone' is going to use a better means of production with its own new standard deviation.
Good Explanation
According to what can we know that standard deviation is high or low? if it is close to zero or small number in this case standard deviation is high?
Thanks
School going population between Namibia vs Nigeria. Namibia is sparsely populated and Nigeria is densely populated. The SD and mean is going to be different. But CV is probably going to be the same.
but what is the meaning of CoV? Example was okay but still looking for its meaning.
Comparing stock market indices of different countries or thematic indices or sectoral indices of the same countries. We could also compare the fluctuations of different mutual funds since they tend to have different NAVs. Thanks for the nice explanation!
Shouldn't you mention variation as "s squared" ? Sx and Sy shown in the image are the standard deviations right ?
Thank you for the great explanation!
I would like to ask: would it be accurate to say that the CV is a measurement of how varied a data set is for the scale that it has?
I had the same thought as yours. I think so.
Beautifully explained! Thanks!!
you've honestly got me though my econ degree thank you
Is there such a thing as coefficient of standard deviation?
Awesome explantion, and so simple to learn
Amazing video it's so simple and easy to understand thank you so much for videos ❤️
Challenge question-
one scenario could be measuring the fluctuations in average temperature of earth (dt)
What do you do if you have a data set where the mean is zero?
So it measures consistency
Glad that I found you! Thank you!
CV would be better for variation in altitude of satellites in low earth orbits and high earth orbits.
Maybe for income variation in different countries.
Thank you so much Mr
Love your tutorial style!!!
Coefficient of variation must also be used for comparing normal stocks vs penny stocks.
Very clear. I love it. Thank you so much.
That was very useful. Thank you!
i do agree, this was a most clear exposition of the CV !
thanks i got clarity to explain to my students
Thanks for the video. The explanation was great! My 2 cents on how/when to use CV. So, I've been sitting here working through some examples in my text, and I guess it comes down to when you are trying to compare or things that could be relative to their respective domains. One example, Annual rainfall of US farmland ( unit of measure: inches) versus Price of US Farmland (unit of measure: USD). Which one has more variability? Another, which one is faster in a 0-60 race, relative to their price, a Kia Spectra or a Porche 911? Though, I haven't done that calculation, I bet it would be a good example of when to use CV. I look forward to your feedback.
Sounds to me like you're implying that the coefficient of variation allows us to compare anything to anything, since the units would cancel out?
CV for the planet distance away from the sun vs CV of feet size in the world is totally legit to compare?
@@MDMAx I think it is legit to compare CV for the planet distance away from the sun vs CV of feet size in the world.
Thanks for a great explanation.
What is a z-score? and how do I find it? Thanks in advance!
great explanation. thank you.
Great video, thank you. Also, i never thought to see my country mentioned in a stat channel xD
Great job
Awesome explanation..
Great video! A very useful tool! thank you keep it up
Awesome video