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.
- A15%Correct
- B6.67%
- C12.5%
- 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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