What's a Good Variance?
As a Rule of Thumb, a Cv >= 1 Indicates a Relatively High Variation, While a Cv < 1 Can Be Considered Low. This Means That Distributions with a Coefficient of...
As a rule of thumb, a CV >= 1 indicates a relatively high variation, while a CV < 1 can be considered low. This means that distributions with a coefficient of variation higher than 1 are considered to be high variance whereas those with a CV lower than 1 are considered to be low-variance.
What is considered a high or low variance?
Variance measures how far a set of data is spread out. ... A small variance indicates that the data points tend to be very close to the mean, and to each other. A high variance indicates that the data points are very spread out from the mean, and from one another.
What is the average variance?
The variance is the average of the squared differences from the mean. ... For example, if a group of numbers ranges from 1 to 10, it will have a mean of 5.5. If you square the differences between each number and the mean, and then find their sum, the result is 82.5.
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