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The Margin of Safety Can Be Used to Evaluate a Company's

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The margin of safety can be used to evaluate a company's plans for the future.


Definitions:

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution.

Chebysheff's Theorem

A statistical theorem that provides a minimum probability for the distribution of values within k standard deviations from the mean for any data set, regardless of the distribution's shape.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values from the average.

Standard Deviation

An indicator of the degree of variation or spread within a collection of numbers.

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