Exam DISC-RM Practice Question 21
Study guide: Exam DISC-RM
A risk manager compares annual property losses at two plants. Plant X's losses have a mean of $200,000 and a standard deviation of $50,000. Plant Y's losses have a mean of $800,000 and a standard deviation of $120,000. Which plant's losses are relatively more variable, and why?
- A) Plant X, because its coefficient of variation is 0.25, against 0.15 for Plant Y
- B) Plant Y, because its standard deviation is more than twice Plant X's
- C) Plant Y, because its coefficient of variation is 6.67, against 4.00 for Plant X
- D) Plant Y, because its variance is about six times Plant X's variance
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