Coefficient of variation
Coefficient of variation, probability, normal distribution
July 9, 2019Percentile score of body temperature data
July 9, 2019Metal Manufacturing has isolated four alternatives for meeting its need for increase production capacity. The following table summarizes datagathered relative to each of these alternatives.
Alternative Expected return Standard deviation
of return
A 20% 7.0%
B 22% 9.5
C 19 6.0
D 16 5.5
a. Calculate the coefficient of variationfor each alternative.
b. If the firm wishes to minimize risk, which alternative do you recommend? Why?
Please see attached file
Metal Manufacturing has isolated four alternatives for meeting its need for increase production capacity. The following table summarizes data gathered relative to each of these alternatives.
Alternative Expected return Standard deviation
…
The solution calculates coefficient of variationfor 4 alternatives and finds the alternative that minimizes risk.
