Acme Taxi has two taxi cabs. The manager tracks the daily revenue for each cab. Over the past 20 days, Cab A has averaged $76.00 per night with a standard deviation equal to $11.00. Cab B has averaged $200.00 per night with a standard deviation of $18.00. Based on this information, the coefficient of variation for Cab B is 9 percent.

Question

Quizplus · Accepted Answer

The coefficient of variation is a measure of relative variability. It is calculated by dividing the standard deviation by the mean. For Cab B, the coefficient of variation is 18 / 200 = 0.09, or 9%.

Acme Taxi Has Two Taxi Cabs