How to measure the degree of discretization

How to measure the degree of discretization

The discrete coefficient, also known as the coefficient of variation, is a common statistical indicator in statistics. It is mainly used to compare the discrete processes of variable series of different levels.

Discrete coefficient indicators include: full distance (range) coefficient, mean difference coefficient, variance coefficient and standard deviation coefficient. Commonly used is the standard deviation coefficient, represented by CV (coefficient of variance.

Standard deviation coefficient

CV (coefficient of variance): Ratio of standard deviation to mean. The formula for calculating the overall standard deviation coefficient is:

V σ = σ/X × 100%, V σ is the standard deviation coefficient, σ is the standard deviation, and X is the average.

Standard Deviation

　　Standard deviation (standard deviation) is most often used in probability statistics as a measurement of the statistical degree of distribution (Statistical Dispersion. The standard deviation defines the square root of the arithmetic mean of the standard value of each unit and the mean deviation. It reflects the degree of discretization between individuals in a group.

The formula is as follows. N indicates the data quantity, Xi indicates the I data, and μ indicates the mean value:

　　　　　

To put it simply, the standard deviation is a measure of the degree of dispersion of the average values of a group of data. A large standard deviation represents a large difference between most values and their average values. A small standard deviation represents that these values are closer to the average value.

The standard deviation is applied to investment and can be used as an indicator to measure the return stability. The larger the standard deviation value, the higher the risk because the return value is far from the previous average value and the return value is unstable. On the contrary, the smaller the standard deviation, the more stable the return and the less risky.

Mean Value

Arithmetic mean refers to the sum of all data in a group and then divided by the number of data. It is an indicator that reflects the trend of data concentration.

How to measure the degree of discretization