# How do you interpret the coefficient of variation?

## How do you interpret the coefficient of variation?

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.

## What is true of the coefficient of variation?

The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from one another.

How do you factor out a coefficient?

Multiply the leading coefficient and the constant, that is multiply the first and last numbers together. Step 4 : List all of the factors from Step 3 and decide which combination of numbers will combine to get the number next to x.

### Is a constant a coefficient?

A coefficient is the number in front of the letter, eg 3×2 3 is the coefficient. A constant is just a number eg y=3×2+7 7 is the constant.

### How do you identify the degree of the polynomial?

In the case of a polynomial with more than one variable, the degree is found by looking at each monomial within the polynomial, adding together all the exponents within a monomial, and choosing the largest sum of exponents. That sum is the degree of the polynomial.

How do you interpret a negative correlation coefficient?

A negative (inverse) correlation occurs when the correlation coefficient is less than 0. This is an indication that both variables move in the opposite direction. In short, any reading between 0 and -1 means that the two securities move in opposite directions.