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# Pricing and Coefficient of Variation

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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.

\$2.49