A project's coefficient of variation is 0.55. The project has a positive coefficient of correlation of 0.20. The expected value is $1,200. What is the standard deviation?
A) $400
B) $220
C) $660
D) $1,200

Question

Quizplus · Accepted Answer

The coefficient of variation (CV) is defined as the ratio of the standard deviation (σ) to the mean (μ), expressed as CV = σ/μ. Given that the CV is 0.55 and the expected value (mean) is $1,200, we can solve for the standard deviation: 0.55 = σ/1200, which gives σ = 0.55 * 1200 = $660.

A Project's Coefficient of Variation Is 0