The coefficient of variation has long been a widely used descriptive and
inferential quantity in various areas of science, economics and others. In chemical
experiments, the coefficient of variation is often used as a yardstick of precision of
measurements; two measurement methods may be compared on the basis of their
respective coefficients of variation. In finance, the coefficient of variation can be used as
a measure of relative risks [2] and a test of the equality of the coefficients of variation for
two stocks, can help to determine if the two stocks possess the same risk or not. Hamer
et al. [3] used the coefficient of variation to assess homogeneity of bone test samples
produced from a particular method to help assess the effect of external treatments, such
as irradiation, on the properties of bones. Ahn [4] used the coefficient of variation in
uncertainty analysis of fault trees. The coefficient of variation has also been employed by
Gong and Li [5] in assessing the strength of ceramics.
The coefficient of variation has long been a widely used descriptive and
inferential quantity in various areas of science, economics and others. In chemical
experiments, the coefficient of variation is often used as a yardstick of precision of
measurements; two measurement methods may be compared on the basis of their
respective coefficients of variation. In finance, the coefficient of variation can be used as
a measure of relative risks [2] and a test of the equality of the coefficients of variation for
two stocks, can help to determine if the two stocks possess the same risk or not. Hamer
et al. [3] used the coefficient of variation to assess homogeneity of bone test samples
produced from a particular method to help assess the effect of external treatments, such
as irradiation, on the properties of bones. Ahn [4] used the coefficient of variation in
uncertainty analysis of fault trees. The coefficient of variation has also been employed by
Gong and Li [5] in assessing the strength of ceramics.
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