Coef. of variation is the ratio, sigma/mean  (or more precisely, est.
sigma / average).

If the average drops below 0, the sign will change.  Is this an issue?
If not, forget it.  If so, continue....

If the data sometimes falls below 0, then a sample will also fall below
0 occasionally.  If this 'occasionally' is enough to consider, then
;you must recognize that occasionally the coef. of variation will go
negative.  Hence, we are back where we started, with a negative c of v.

Does this help any?

Jay

Paul Smith wrote:

> Dear All
>
> Some books say that the coefficient of variation can only be used if
> the random variable is positive. I would like to know why cannot one
> extend the use of the same coefficient with not necessarily positive
> random variables but with positive mean. Could somebody here please
> help me?
>
> Thank you a lot in advance!
>
> Paul
> .
> .
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--
Jay Warner
Principal Scientist
Warner Consulting, Inc.
4444 North Green Bay Road
Racine, WI 53404-1216
USA

Ph: (262) 634-9100
FAX: (262) 681-1133
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