Question: The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are to be compared. The mean price of the stocks selling for under $10 is $5.25 and the standard deviation $1.52. The mean price of those stocks selling for over $60 is $95.20 and the standard deviation $5.28.
Q1. Why should the coefficient of the variation be used to compare the dispersion in the prices?
Q2. Compute the coefficients of the variation. What is your conclusion?