Bootstrap Method for Testing of Equality of Several Coefficients of Variation

Abstract

The coefficient of variation has been found to be very useful unit less measure of relative consistency of sample data in many areas such as chemical experiments, finance, insurance risk assessment, medical studies, etc., a chi-square test is used for testing the equality of several coefficients of variation in the literature. This chi-square test demonstrates only the statistical significance of coefficients of variation. In this paper, a bootstrap graphical method is developed as an alternative to the chi-square test to test the hypothesis on equality of several coefficients of variation. An example is given to demonstrate the advantage of bootstrap graphical procedure over the chi-square test from decision making point of view.