(i. If two sets of data are in different units, we can compare the dispersion by using coefficient of variation. (ii) A study is made of the commissions paid to furniture salespersons. If the variance is computed, it would be measured in dollars squared.
(iii) The coefficient of skewness is a measure of relative dispersion.
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements, but not (i).
E) (i), (ii) and (iii) are all false statements.

Question

Quizplus · Accepted Answer

(i) The coefficient of variation is indeed used to compare the dispersion of two datasets that are in different units, as it normalizes the standard deviation relative to the mean. (ii) When variance is computed, it is indeed in the square of the units of the data (e.g., dollars squared for financial data), because variance is calculated as the average of the squared differences from the Mean. (iii) The coefficient of skewness is not a measure of relative dispersion; it measures the asymmetry of the distribution of data around its mean, not the relative spread of the data.

(I If Two Sets of Data Are in Different Units