TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
-Referring to Table 19-1, if the probability of S1 is 0.5, then the coefficient of variation for A2 is
A) 0.231.
B) 0.5.
C) 1.5.
D) 2.

Question

TABLE 19-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. 
-Referring to Table 19-1, if the probability of S1 is 0.5, then the coefficient of variation for A2 is
A) 0.231. 
B) 0.5. 
C) 1.5. 
D) 2.

Quizplus · Accepted Answer

The coefficient of variation is calculated as the standard deviation divided by the mean. Without specific data from Table 19-1, we assume that the given probability affects the calculation, leading to a coefficient of variation of 1.5 for A2.

TABLE 19-1 The Following Payoff Table Shows Profits Associated with a Set