How to Calculate Coefficient of Variation for Profit Levels

What is the purpose of calculating the coefficient of variation?

Choose the correct answer:

a. To measure the absolute variability of a set of data

b. To measure the relative variability of a set of data

c. To determine the mean of a set of data

Answer:

The correct answer is b. To measure the relative variability of a set of data.

The coefficient of variation measures the relative variability of a set of data. It helps in understanding the consistency or inconsistency in the variability of the data points.

← Percentage of change in net income from 2023 to 2025 What is the maximum allowed height for a rolling scaffold being moved by workers →