An Analyst Gathered the Following Information About the Net Profit

question 106

Multiple Choice

An analyst gathered the following information about the net profit margins of companies in two industries: Compared with the other industry,the relative dispersion of net profit margins is smaller for Industry ___________________________________________.

• A) B,because it has a smaller mean deviation.
• B) B,because it has a smaller range of variation.
• C) A,because it has a smaller standard deviation.
• D) A,because it has a smaller coefficient of variation.

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Definitions:

μ (Mean)

A symbol representing the mean or average of a set of numbers, calculating by summing all numbers and dividing by the count of numbers.

Cumulative Distribution Function

A function that gives the probability that a random variable is less than or equal to a certain value.

Random Variable

An attribute whose numerical values stem from the occurrence of a random event.

Probability

Probability is a measure of the likelihood that an event will occur, often expressed as a number between 0 and 1, where 1 indicates certainty.