PRC-2 · Chapter 8 · Question 45 of 60
Which statistical measure of relative dispersion is utilized to compare the intrinsic volatility of two different datasets that are measured in completely different units (e.g., comparing weight in kg to height in cm)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Coefficient of Variation
Explanation
The Coefficient of Variation (CV) divides the standard deviation by the mean and expresses the result as a pure percentage, making it a unitless measure perfect for comparing wildly different datasets.
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