Coefficient of variation and standard deviation.
So as to make the best decision about the health care initiative under discussion, the US Congress is considering data from 3 countries, representing 3 different philosophies in health care management. They want to study data from the last 15 years on average expenditures per person per year with standard deviation over the 15 years listed below:
Average per person per Year is 4100 US Dollars
Standard Deviation: 800 dollars
Average per person per year is 250,000 yen
Standard deviation is: 20,000 yen
Average per person per year is 2100 Euros
Standard deviation is 300 Euros
Assume: $1 USD = 100 yen and $2 USD = 1 Euro.
a) Country A and Country C spends about the same quantity on average per person per year. Which has the greater spread?
b) Which country has the lowest CV and what does this mean? No explanation, no credit.
c) In the above, the sample variances given are all computed taking the data as samples. If you were to consider data set for country A as a population, would the mean and/or the standard deviation be the same? Go up? Or go down?
Mean___________, Standard Deviation___________