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

The monthly sales of a Surat textile shop have a mean of ₹50,000 and a standard deviation of ₹7,500. What is the coefficient of variation of its sales?

The coefficient of variation is 15%. It is computed as standard deviation divided by mean, multiplied by 100, so 7,500 divided by 50,000 gives 0.15, or 15%. It expresses dispersion relative to the average, which makes it unit-free and comparable.

  1. A15%Correct
  2. B6.67%
  3. C12.5%
  4. D20%

Explanation

CV = (SD / Mean) × 100 = (7,500 / 50,000) × 100 = 15%. The figure 6.67% comes from inverting the ratio (Mean/SD), which is the wrong base.

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