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Illustration 2
Find out the coefficient of variation in the two firms and briefly comment on the degree of dispersion of the salaries in the two firms.
First firm in the UK
C.O.V = (150/3500 ) x 100
= 4.29%
Second firm in middle Asia
C.O.V = (800/8500) x 100
= 9.4%
Conclusively, as 4.29 percent < 9.4 percent then the salaries offered by the firm in UK is much closer to the mean described them in the case to the local branch in middle Asia
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