A study of business faculty in Ontario revealed that the arithmetic mean annual salary is $72,000 and a standard deviation of $3,000. The study also showed that the faculty had been employed an average (arithmetic mean) of 15 years with a standard deviation of 4 years. How does the relative dispersion in the distribution of salaries compare with that of the lengths of service?
A) Salaries about 100%, service about 50%
B) Salaries about 4%, service about 27%
C) Salaries about 42%, service about 81%
D) Salaries about 2%, service about 6%
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The coefficient of variation (CV) is used to compare relative dispersion. CV for salaries = (3000/72000) * 100 ≈ 4.17%. CV for service = (4/15) * 100 ≈ 26.67%.

A Study of Business Faculty in Ontario Revealed That the Arithmetic