To determine which share price has more relative variation, we calculate coefficient of variation of prices of share A and share B.
Share A
Mean:
x̄ = \(\frac{Σx}{n}=\frac{3210}{10}\) = ₹ 321
Standard deviation:
s = \(\sqrt\frac{Σ(x−\bar x)^2}{n}\)
= \(\sqrt\frac{70}{10}\)
= √7
= ₹ 2.65
Coefficient of variation:
Variation = \(\frac{s}{\bar x}\) × 100
= \(\frac{7.14}{140}\) × 100
= 0.051 × 100
= 5.1%
Coefficient of variation of price of share A 0.83% and that of share B it is 5.1%. Hence, the relative measure of variation is more in the price of share B.