Where does the coefficient of variation (CV) generally lie between?

D

CV always lies between 0% and infinity. The larger the CV, the larger the dispersion.

The coefficient of variation (CV) is a statistical measure that provides insight into the relative variability of a data set, taking into account the mean and standard deviation. It is commonly used to compare the risk or volatility of different investments or assets.

The CV is calculated by dividing the standard deviation of a data set by its mean and then multiplying the result by 100 to express it as a percentage. Mathematically, it can be represented as:

CV = (Standard Deviation / Mean) * 100

The coefficient of variation is a dimensionless value and is often used to compare the relative risk or volatility of different assets or investments, regardless of their scales or units of measurement.

Now let's evaluate the given answer options:

A. -1 and +1: This range is incorrect because the CV is always a positive value, representing the percentage variability.

B. -3 and +3: This range is also incorrect because the CV is not bound by a fixed range and can exceed 3 or be less than -3 in certain situations.

C. None of these answers: This answer implies that none of the given ranges are correct, which is accurate since the CV does not have a fixed range.

D. 0% and infinity: This range is incorrect because the CV can be greater than infinity in certain cases, especially when the mean of the data set approaches zero.

E. Unlimited values: This answer is the most appropriate choice. The coefficient of variation (CV) does not have a fixed range and can take any positive value, indicating that the relative variability of the data set can be any magnitude.

Therefore, the correct answer is C. None of these answers, as the coefficient of variation (CV) does not generally lie within any specific range.