A Study Was Conducted of the 12-Month Earnings Per Share

question 111

Multiple Choice

A study was conducted of the 12-month earnings per share for two categories of airline companies. $$\begin{array} { | c | c | } \hline \text { Large Airlines } & \text { Small Airlines } \\\hline \$ 4.36 & \$ 1.60 \\6.19 & - 1.98 \\- 0.42 & 1.03 \\3.73 & - 0.21 \\0.26 & - 1.15 \\6.27 & 4.19 \\& 0.59 \\& 1.52 \\& 1.97 \\& 4.57 \\& 0.05 \\\hline\end{array}$$ Based on the above data,which of the following statements is correct?

• A) The large airlines have a coefficient of variation of 2.44 while the small airlines have a coefficient of variation of 3.64.
• B) Because the large airlines have mean earnings per share of 3.40 and the small airlines have mean earnings per share of 1.11,the large airlines have the largest coefficient of variation.
• C) Because the large airlines have mean earnings per share of 3.54 and the small airlines have mean earnings per share of 1.71,the large airlines have the largest coefficient of variation.
• D) The large airlines have a coefficient of variation of 0.85 and the small airlines have a coefficient of variation of 2.72.
• E) The large airlines have a coefficient of variation of 0.81 and the small airlines have a coefficient of variation of 1.17.

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Definitions:

Annual Contributions

The amount of money contributed to a particular account or investment over the course of a year.

Savings Plan

A scheme that encourages regular saving with a bank or financial institution, often linked with benefits such as interest or investment returns.

Effective Rate

A comprehensive annual rate that accounts for compounding, often used in finance and investments to provide a true comparison among different financial products.

Investments

The allocation of assets with the goal of generating income or profit over time.