Coefficient Of Dispersion Calculator

Enter the values separated by commas into the calculator to determine the Coefficient of Dispersion (COD).

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Coefficient of Dispersion Formula

The following formula is used to calculate the Coefficient of Dispersion (COD) for a given set of values.

COD = \frac{\sum |x_i - M|}{n \cdot M}

Variables:

COD is the Coefficient of Dispersion
( x_i ) are the individual values in the dataset
( M ) is the median of the dataset
( n ) is the number of values in the dataset

To calculate the Coefficient of Dispersion, first find the median of the dataset. Then, calculate the sum of the absolute differences between each value and the median. Divide this sum by the product of the number of values and the median to get the COD.

What is the Coefficient of Dispersion?

The Coefficient of Dispersion (COD) is a statistical measure used to quantify the relative dispersion of a dataset. It is particularly useful in fields such as real estate and finance to assess the variability of property values or investment returns. The COD is calculated as the average absolute deviation from the median, expressed as a percentage of the median. A lower COD indicates that the values are closely clustered around the median, while a higher COD suggests greater variability.

How to Calculate the Coefficient of Dispersion?

The following steps outline how to calculate the Coefficient of Dispersion.

First, list all the values in the dataset.
Next, calculate the median of the dataset.
Then, find the absolute difference between each value and the median.
Sum all the absolute differences.
Finally, divide the sum of absolute differences by the product of the number of values and the median to get the COD.
After inserting the values and calculating the result, check your answer with the calculator above.

Example Problem :

Use the following variables as an example problem to test your knowledge.

Values: 10, 20, 30, 40, 50

Calculate the Coefficient of Dispersion for the given values.