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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?

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    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.

    $2.19

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