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Digital Technology wishes to determine its coefficient of variation as a company over time. The firm projects the following data (in millions of dollars): Year
Digital Technology wishes to determine its coefficient of variation as a company over time. The firm projects the following data (in millions of dollars):
Year | Profits: Expected Value | Standard Deviation | ||||
1 | $ | 97 | $ | 25 | ||
3 | 200 | 63 | ||||
6 | 218 | 85 | ||||
9 | 230 | 100 | ||||
a. Compute the coefficient of variation (V) for each time period. (Round your answers to 3 decimal places.)
b. Does the risk (V) appear to be increasing over a period of time?
Yes | |
No |
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