# Pricing and Coefficient of Variation

Question 1. The spread in the annual fuel-oil prices and the price of natural gas are compared. The mean price of the fuel-oil is $8.64 and the standard deviation is $2.47. The mean price of natural gas is $22.50 and the standard deviation is $5.25.

a) Why should the coefficient of variation be used to compare the dispersion in the prices?

b) Compute the coefficients of variation. What is your conclusion?

https://brainmass.com/statistics/coefficient-of-variation/pricing-and-coefficient-of-variation-142289

#### Solution Preview

Question 1. The spread in the annual fuel-oil prices and the price of natural gas are compared. The mean price of the fuel-oil is $8.64 and the standard deviation is $2.47. The mean price of natural gas is $22.50 and the standard deviation is $5.25.

a) ...

#### Solution Summary

This Solution contains calculations to aid you in understanding the Solution to these questions.