Influence Functions for the Coefficient of Variation, Its Inverse, and CV Comparisons

Abstract

Expressions are found for the influence function of the coefficient of variation, CV, and its reciprocal, the signal to noise ratio. These functions are free of units, which permits the comparison of the values of the CVs of continuous positive distributions to a perturbation by a small amount of probability at x. For a CV ≤0.5, the influence function response will be negative, of modest size, for values of x near E(X). For such values of a CV and of x, the influence function for 1/CV will be positive and its values will be substantial. These results imply similar behavior by the sample coefficient of variation or its reciprocal, which is supported by simulation studies in the literature. Values of the CV ≥1 are associated with large negative responses of their influence functions. The distributions producing such responses often have densities that decrease from positive infinite to zero on the positive axis with a long tail to the right. An influence function for the difference of two coefficients of variation is also obtained.

Keywords:

• Coefficient of variation
• Influence functions
• Signal-to-noise ratio
• Variability measurement

Mathematics Subject Classification:

• Primary 62
• Secondary E20