The mean of the number of sales of cars over a 3-month period is $87, and the standard deviation is 5. The mean of the commissions is $5225, and the standard deviation is $773. A. calculate the coefficient of variation. B. compare the variation of the two and give your comments regarding the variation.
Answers
Answer:
Heya................❤✌
A) Coefficient of Variation (sales) = (5/87) *100
= 5.74%
Coefficient of Variation ( commotions) = (773/5225)*100 = 14.8%
B) Commissions are more variable & less stable & less uniform than sales.
Explanation : Coefficient of variation is large indicates that the group is more variable & it is less stable or less uniform. If a coefficient of variation is small then it indicates that the group is less variable & it is more stable & more uniform.
Hope it’s helpful....... ☺
Answer:
The coefficients of variation are 5.78 and 14.8 respectively.
Step-by-step explanation:
Given:
Mean of sales (n₁) = 87
Standard deviation (S₁) = 5
Mean of commissions (n₂) = 5225
Standard deviation (S₂) = 773
To find:
Coefficients of variation
Formula:
Coefficient of variation = (S/n) × 100
Solution:
For the number of sales of cars:
Mean (n₁) = 87 and standard deviation (S₁) = 5
Using the given formula, we get
Coefficient of variation = (S/n) × 100
Coefficient of variation = (5/87) × 100
Coefficient of variation = 0.0578 × 100
Coefficient of variation = 5.78
For commissions:
Mean (n₂) = 5225 and standard deviation (S₂) = 773
Using the given formula, we get
Coefficient of variation = (S/n) × 100
Coefficient of variation = (773/5225) × 100
Coefficient of variation = 0.1479 × 100
Coefficient of variation = 14.8
The coefficient of variation for the number of sales is less than that of commissions. This implies that the data for the number of sales is less dispersed as compared to the data for the commissions.
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