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Suppose you are comparing the degree of risk for the two firms, Gao and Christensen. From their respective loss frequency distributions, we have the following
Suppose you are comparing the degree of risk for the two firms, Gao and Christensen. From their respective loss frequency distributions, we have the following information concerning "inventory shrinkage" per month. For Christensen the mean is equal to 9 and the variance is equal to 1.8. For Gao the mean is equal to 6 and the variance is equal to 1.9. Using the BEST measure to compare the degree of risk for these two companies, which company faces more risk? Christensen because their coefficient of variation is higher than Gao Christensen because their variance is higher than Gao Gao because their coefficient of variation is higher than Christensen Gao because their variance is higher than Christensen Cannot answer given the information provided
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