Digital Technology wishes to determine its coefficient of variation as a company over time. The firm projects the following data (in millions of dollars): Year 1 3 6 9 Profits: Expected Value $ 97 Year 1 3 135 243 277 6 G a. Compute the coefficient of variation (V) for each time period. Note: Round your answers to 3 decimal places. Standard Deviation $34 Yes 55 128 176 No b. Does the risk (V) appear to be increasing over a period of time? Coefficient of Variation
Digital Technology wishes to determine its coefficient of variation as a company over time. The firm projects the following data (in millions of dollars): Year 1 3 6 9 Profits: Expected Value $ 97 Year 1 3 135 243 277 6 G a. Compute the coefficient of variation (V) for each time period. Note: Round your answers to 3 decimal places. Standard Deviation $34 Yes 55 128 176 No b. Does the risk (V) appear to be increasing over a period of time? Coefficient of Variation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Digital Technology wishes to determine its coefficient of variation as a company over time. The firm projects the following data (in
millions of dollars):
Year
1
3
6
9
Profits:
Expected
Value
$ 97
135
243
277
Year
1
3
6
a. Compute the coefficient of variation (V) for each time period.
Note: Round your answers to 3 decimal places.
9
Standard
Deviation
$34
55
Yes
128
176
No
b. Does the risk (V) appear to be increasing over a period of time?
Coefficient of
Variation
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