refer to the following table showing the probability distribution of payoffs from an activity.

-What is the coefficient of variation for this distribution?
A) 0.39
B) 2.34
C) 0.86
D) 1.02
E) 0.10

Question

refer to the following table showing the probability distribution of payoffs from an activity.
 
-What is the coefficient of variation for this distribution?
A) 0.39 
B) 2.34 
C) 0.86 
D) 1.02 
E) 0.10

Quizplus · Accepted Answer

The coefficient of variation is a measure of the relative variability of a distribution. It is calculated by dividing the standard deviation by the mean. In this case, the standard deviation is 10 and the mean is 25. Therefore, the coefficient of variation is 10/25 = 0.4.

Refer to the Following Table Showing the Probability Distribution of Payoffs