The asset turnover ratio (ATR) is the ratio of a company's revenues to the value of its assets (indicating its efficiency in deploying its assets). We should not use the standard deviation to compare ATR variation among industrial sectors because firms with large asset bases (e.g., utilities, financial) typically have lower mean ATR than, say, retail firms. Mean St Dev Retail 2.8580 0.5200 Retail Utilities Financial Click here for the Excel Data File (a) Use the sample data to calculate the coefficient of variation for each sector. (Round your answers to 2 decimal places.) Coefficient of variation Utilities 0.0416 0.0091 % % % Financial 0.0723 0.0383

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The asset turnover ratio (ATR) is the ratio of a company's revenues to the value of its assets (indicating its efficiency in deploying its
assets). We should not use the standard deviation to compare ATR variation among industrial sectors because firms with large asset
bases (e.g., utilities, financial) typically have lower mean ATR than, say, retail firms.
Mean
St Dev
Retail
2.8580
0.5200
Click here for the Excel Data File
Retail
Utilities
Financial
Utilities
0.0416
0.0091
(a) Use the sample data to calculate the coefficient of variation for each sector. (Round your answers to 2 decimal places.)
Coefficient of
variation
%
%
%
Financial
0.0723
0.0383
Transcribed Image Text:The asset turnover ratio (ATR) is the ratio of a company's revenues to the value of its assets (indicating its efficiency in deploying its assets). We should not use the standard deviation to compare ATR variation among industrial sectors because firms with large asset bases (e.g., utilities, financial) typically have lower mean ATR than, say, retail firms. Mean St Dev Retail 2.8580 0.5200 Click here for the Excel Data File Retail Utilities Financial Utilities 0.0416 0.0091 (a) Use the sample data to calculate the coefficient of variation for each sector. (Round your answers to 2 decimal places.) Coefficient of variation % % % Financial 0.0723 0.0383
The asset turnover ratio (ATR) is the ratio of a company's revenues to the value of its assets (indicating its efficiency in deploying its
assets). We should not use the standard deviation to compare ATR variation among industrial sectors because firms with large asset
bases (e.g., utilities, financial) typically have lower mean ATR than, say, retail firms.
Mean
St Dev
Retail
2.8580
0.5200
Click here for the Excel Data File
Retail
Utilities
Financial
Utilities
0.0416
0.0091
(a) Use the sample data to calculate the coefficient of variation for each sector. (Round your answers to 2 decimal places.)
Coefficient of
variation
%
%
%
Financial
0.0723
0.0383
Transcribed Image Text:The asset turnover ratio (ATR) is the ratio of a company's revenues to the value of its assets (indicating its efficiency in deploying its assets). We should not use the standard deviation to compare ATR variation among industrial sectors because firms with large asset bases (e.g., utilities, financial) typically have lower mean ATR than, say, retail firms. Mean St Dev Retail 2.8580 0.5200 Click here for the Excel Data File Retail Utilities Financial Utilities 0.0416 0.0091 (a) Use the sample data to calculate the coefficient of variation for each sector. (Round your answers to 2 decimal places.) Coefficient of variation % % % Financial 0.0723 0.0383
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