Hy, I have datas of some countries (gdp per capita) and I want to know how to calculate the coefficient of variation of per capita income.
Thanks
Responses (1)
I am not sure if that's what you are asking, but to calculate per capita income, you must first know the total personal income and the population for the area in which you want to determine the per capita income. The equation is pci = i/p, where "i" is the total personal income and "p" is the total population of that country.
Ooh I think I get what you are asking now. So you have a set of data. 1st find the mean (average) of that data, add all the numbers together and divide by how many numbers there were. Then you take that mean and use it to find the standard deviation. The standard deviation equation is ^square root^ (data point - mean)^2/# of data point - 1. So to break it down, 1st find the mean. Then take each data point and subtract it from the mean (number - mean). Square each number and add all the numbers (that were squared). The next part is to divide that number by how many data points were there minus one. Once you do that you will get something called the variance and all you have to do from there is to square root that number to get the standard deviation. Once you get the standard deviation you will use the hint (the coefficient of variation is defined as standard deviation/mean). So you will take the standard deviation and divide it by the mean. I will give you an example so you can understand. I was given 3.0, 4.0, 2.0, 5.0. I will find the mean which is 3.5. Then I will do 3-3.5, 4-3.5, 2-3.5, and 5-3.5. I will have -0.5, 0.5, -1.5, and 1.5. I will then square each number to make them positive so I will get 0.25, 0. 25, 2.25, and 2.5. I will add these values to get 5.0. Notice I was given 4 original points. I take the 5.0 and divide it by 3 (number of points - 1 in the equation) and that gives me 1.667. This is called the variance. Then I square root that number to get the standard deviation, which is 1.291. I will use the hint 1.291 and divide it by 3.5 (my mean) and the answer is 0.368857. Sorry if its late :) the question was not clear.
Thanks for your response but i already have per capita income and i need to calculate its coefficient of variation. I have a hint but it doesn't help me that much (note that the coefficient of variation is defined as standard deviation/mean)