Question

A risk has the following summary statistics: Mean=10, Median=20, Mode=12, Standard Deviation=4, Variance=16. What is the coefficient of variation?

a) 20%
b) 40%
c) 50%
d) 80%

Answer 1

The coefficient of variation is calculated by dividing the standard deviation by the mean and multiplying by 100. With a mean of 10 and a standard deviation of 4, the coefficient of variation is 40%.

Step-by-step explanation:

The question being asked is about determining the coefficient of variation. The coefficient of variation (CV) is calculated by dividing the standard deviation by the mean and then multiplying by 100 to convert it to a percentage. Given that the mean is 10 and the standard deviation is 4, the coefficient of variation would be (4/10) * 100 = 40%. Therefore, the correct answer is b) 40%.