Coefficient of Variation MCQs
Coefficient of Variation – MCQs with Answers & Explanations
Class: 11 | Subject: Economics (Statistics for Economics)
Section: Measures of Dispersion
Topic: Coefficient of Variation
Prepared as per CBSE Board Examination Pattern
Section: Measures of Dispersion
Topic: Coefficient of Variation
Prepared as per CBSE Board Examination Pattern
Instructions: These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation.
1. Coefficient of Variation (CV) is a measure of:
Answer: B
CV is a relative measure used to compare variability between different data sets.
CV is a relative measure used to compare variability between different data sets.
2. Formula of CV:
Answer: A
CV = (Standard Deviation ÷ Mean) × 100.
CV = (Standard Deviation ÷ Mean) × 100.
3. CV is expressed in:
Answer: B
Multiplying by 100 converts it into percentage.
Multiplying by 100 converts it into percentage.
4. Lower CV indicates:
Answer: B
Lower variation relative to mean → more consistency.
Lower variation relative to mean → more consistency.
5. Higher CV indicates:
Answer: C
Higher CV means data is more dispersed.
Higher CV means data is more dispersed.
6. CV is useful for comparing:
Answer: A
It standardizes dispersion for comparison.
It standardizes dispersion for comparison.
7. If CV = 0, it means:
Answer: B
SD is zero → all values equal.
SD is zero → all values equal.
8. CV depends on:
Answer: C
Both are required in formula.
Both are required in formula.
9. Series with lower CV is:
Answer: B
Lower dispersion → higher reliability.
Lower dispersion → higher reliability.
10. CV is a:
Answer: B
It is expressed in percentage form.
It is expressed in percentage form.
11. CV is widely used in:
Answer: D
It compares stability across sectors.
It compares stability across sectors.
12. If mean increases (SD constant), CV:
Answer: B
Larger mean reduces CV value.
Larger mean reduces CV value.
13. If SD increases (Mean constant), CV:
Answer: B
Higher dispersion raises CV.
Higher dispersion raises CV.
14. CV helps measure:
Answer: D
Used in investment and economic comparisons.
Used in investment and economic comparisons.
15. CV cannot be negative because:
Answer: C
SD is positive; mean generally positive in economic data.
SD is positive; mean generally positive in economic data.
16. CV is best for comparing:
Answer: A
It standardizes dispersion regardless of units.
It standardizes dispersion regardless of units.
17. CV converts SD into:
Answer: B
It expresses SD relative to mean.
It expresses SD relative to mean.
18. More consistent series has:
Answer: B
Lower variation → higher consistency.
Lower variation → higher consistency.
19. CV is derived from:
Answer: B
Formula directly uses SD and Mean.
Formula directly uses SD and Mean.
20. CV is most suitable for:
Answer: D
It is widely applied in economic and business comparisons.
It is widely applied in economic and business comparisons.