Al Bundy is evaluating a new advertising program that could increase shoe sales Possible outcomes and probabilities of the outcomes are shown below. Compute the coefficient of variation Additiona Possible outcomes Sales in Units Probabilities Ineffective campaign 40 Normal response emely Solution: Al Bundy Coefficient of variation()=standard deviation/expected value D=∑DP DP 20 8 50 30 140 42 √∑D-DP (D-D)(D-D)2 P (D-D)2P 4080 40 1600 20 320 400 200 1408 +60 1.080 1.600 600=40 40 50 80 CopyrightC 2005 by The McGray-Hill Companies, Inc.Copyright © 2005 by The McGraw-Hill Companies, Inc. S-482 13-3. Al Bundy is evaluating a new advertising program that could increase shoe sales. Possible outcomes and probabilities of the outcomes are shown below. Compute the coefficient of variation. Possible Outcomes Additional Sales in Units Probabilities Ineffective campaign 40 .20 Normal response 60 .50 Extremely effective 140 .30 Solution: Al Bundy Coefficient of variation (V) = standard deviation/expected value. D = DP D 40 60 140 P .20 .50 .30 DP 8 30 42 80 = D (D D) P 2  =  − D D (D− D) 2 (D − D) P (D D) P 2 − 40 80 –40 1,600 .20 320 60 80 –20 400 .50 200 140 80 +60 3,600 .30 1,080 1,600 .50 80 40 V 1,600 40 = = = = 