Page 114 - DECO504_STATISTICAL_METHODS_IN_ECONOMICS_ENGLISH

Statistical Methods in Economics

Notes 25.5 24.43
C.V. = × 100 = 55.43 C.V. = × 100 = 48.86
46 50
Since coefficient of variation is less for batsman B hencebatsman B is more consistent.
Example 14: A panel of two judges P and O graded seven dramatic performances by independently
awarding marks as follows:
Performance: 1 2 3 4 5 6 7

Marks by P: 46 42 44 40 43 41 45
Marks by O: 40 38 36 35 39 37 41

Find out coefficient of variation in the marks awarded by two judges and interpret
the result.
Solution:

Coefficient of Variation of the Marks Obtained by P and O

Marks by P ( X– X ) x 2 Marks by O ( Y – γ ) y 2
X x Y y

46 + 3 9 40 + 2 4
42 –1 1 38 0 0
44 + 1 1 36 – 2 4
40 – 3 9 35 – 3 9
43 0 0 39 + 1 1
41 – 2 4 37 – 1 1
45 + 2 4 41 + 3 9
2
2
ΣX = 301 Σx = 0 Σx = 28 ΣY = 266 Σy = 0 Σy = 28
Marks by P
ΣX 301
X = N = 7 = 43

Σx 2 28
σ = = = 2
N 7

σ 2
C.V. = × 100 = × 100 = 4.65
X 43
Marks by O

ΣY 266
Y = N = 7 = 38

Σy 2 28
σ = = = 2
N 7
σ 2
C.V. = × 100 = × 100 = 5.26.
Y 38

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