22. The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are to be compared. The meanprice of the stocks selling for under $10 is $5.25 and the standard deviation$1.52. The mean price of those stocks selling for over $60 is $92.50 and the standard deviation $5.28.
a. Why should the coefficient of variationbe used to compare the dispersion in the prices?
b. Compute the coefficients of variation. What is your conclusion?
6. The director of admissions at Kinzua University in Nova Scotia estimated the distribution of student admissions for the fall semester on the basis of past experience. What is the expected number of admissions for the fall semester? Compute the varianceand the standard deviation of the number of admissions.
The solution answers two questions for the coefficient of variation for prices of stocks and admissions into a university.