The formula
CV = (s / x̄) × 100
What it means
A standard deviation of five says nothing on its own: it is enormous if the mean is ten and negligible if the mean is ten thousand. The coefficient of variation fixes that by dividing the deviation by the mean, which strips the units away and leaves a percentage. That is what makes it possible to compare the variability of two things measured in completely different ways, which is exactly what standard deviation cannot do.
How to work it out by hand
- Work out the mean of the values
- Work out the standard deviation
- Divide the deviation by the mean
- Multiply by a hundred to get a percentage
What is worth knowing
The coefficient is useless when the mean sits near zero, because the division blows up and the result stops meaning anything; and it is invalid outright with negative means or on interval scales such as degrees Celsius, where zero is arbitrary: twenty degrees is not "twice" ten. As a rule of thumb, below fifteen per cent the data are homogeneous and above thirty they are clearly spread out, though those thresholds depend on the field.