Problem: Business Risk at Acme

Acme Ltd$.$ had the following EBIT in CAD over the last $7-$year business cycle:

$20037,000$

$20049,000$

$200513,500$

$200615,000$

$200716,000$

$200812,000$

$20098,000$

REQUIRED:

$1.$ Calculate the mean, standard deviation, and coefficient of variation of EBIT.

$2.$ What does the coefficient of variation measure?Problem: Business Risk at Acme

Acme Ltd$.$ had the following EBIT in CAD over the last $7-$year business cycle:

$20037,000$

$20049,000$

$200513,500$

$200615,000$

$200716,000$

$200812,000$

$20098,000$

REQUIRED:

$1.$ Calculate the mean, standard deviation, and coefficient of variation of EBIT.

$2.$ What does the coefficient of variation measure?