The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are compared. The meanprice of the stocks selling for under $10 is $5.25 and the standard deviationis $1.52. The mean price of those stocks selling for over $60 is $92.50 and the standard deviation is $5.28.
a) Why should the coefficient of variationbe used to compare the dispersion in the prices?
The dataare in different units (such as dollars and days absent).
The data are in the same units, but the means are far apart (such as the incomes of the top executives and the incomes of the unskilled employees).
b) Compute the coefficients of variation. What is your conclusion?
a) Why should the coefficient of variation be used to compare the dispersion in the prices?
In this case we have the data which is in same units but their magnitude is very …
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