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CA Foundation · Quantitative Aptitude · Measures of Central Tendency and Dispersion

A series has mean 40 and coefficient of variation 25%. Every observation is increased by 10. What is the new coefficient of variation?

The new coefficient of variation is 20%. The original standard deviation is 10, which does not change when a constant is added, but the mean rises from 40 to 50. So CV becomes 10 divided by 50, times 100, equal to 20%.

  1. A20%Correct
  2. B25%
  3. C30%
  4. D12.5%

Explanation

Original SD = 25% of 40 = 10. Adding a constant leaves the SD unchanged at 10, while the mean becomes 50. New CV = 10/50 × 100 = 20%. The option 25% wrongly assumes CV is unaffected by a shift.

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