Six Sigma Black Belt Exam Prep

Category - Black Belt

In the coefficient of variation formula below, what does the (S) stand for?
  1. sigma
  2. standard deviation
  3. sum of squares
  4. sum of rectangles
Explanation
Answer: B - The S stands for standard deviation.

Key Takeaway: The Coefficient of Variation measures relative variation in a data set and is always shown as a percentage. The standard deviation of a data set is divided by the mean which shows a variation relative to the mean of the data set. This type of statistic can be used to measure the variation of two data sets; for example, the dimensions of pencils produced by two machines can be compared in terms of variation to gauge their precision.
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