Refer to the following table showing the probability distribution of payoffs from an activity to answer the question below: $$\begin{array} { c c c }
\text { Units } & \text { Payoff } & \text { Prabability } \
\hline 1 & \$ 30 & 10 \% \
\mathbf { 2 } & 40 & 25 \% \
3 & 60 & 30 \% \
4 & 50 & 20 \% \
5 & 10 & 15 \% \
\hline
\end{array}$$ 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 to answer the question below: $$\begin{array} { c c c } 
\text { Units } & \text { Payoff } & \text { Prabability } \
\hline 1 & \$ 30 & 10 \% \
\mathbf { 2 } & 40 & 25 \% \
3 & 60 & 30 \% \
4 & 50 & 20 \% \
5 & 10 & 15 \% \
\hline
\end{array}$$ 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 dispersion of a probability distribution. It is calculated by dividing the standard deviation by the mean. The standard deviation is a measure of how much the data is spread out, and the mean is a measure of the central tendency of the data.In this case, the mean is 42 and the standard deviation is 16.4. Therefore, the coefficient of variation is 16.4 / 42 = 0.39.

Refer to the Following Table Showing the Probability Distribution of Payoffs