What is an acceptable range for the coefficient of variation for a binomial distribution?
Suppose I have a dummy (0,1) variable. My understanding is that the coefficient of variation is equal to the square root of ((1-p) / (n*p)). Where p is equal to the proportion of 1's, and, n is the sample size. http://mathcentral.uregina.ca/QQ/database/QQ.02.06...
I have read that a CV of less than 1 is good, between 1 and 2 is average and greater than 2 is high. Does the same rule of thumb apply for a binomial distribution?
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