How is the Standard Deviation and Coefficient of Variation calculated in this table. Scenario Analysis: (Note:...

 

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How is the Standard Deviation and Coefficient of Variation calculated in this table. Scenario Analysis: (Note: This section does NOT automatically recalculate when values in the INPUT DATA section are changed. However, the probabilities within the section can be changed and the resulting values will automatically be recalculated.) Case Probability Number of Procedures Avg Revenue Bldg/Equip per Procedure Salvage Value Worst 25.0% 10 $800 $4,000,000 NPV ($5,501,433) Most Likely 50.0% Best 25.0% 220 1,000 5,000,000 875,020 25 1,200 6,000,000 6,651,083 100.0% Expected NPV $724,922 Standard Deviation $4,299,184 Coefficient of Variation 5.9 How is the Standard Deviation and Coefficient of Variation calculated in this table. Scenario Analysis: (Note: This section does NOT automatically recalculate when values in the INPUT DATA section are changed. However, the probabilities within the section can be changed and the resulting values will automatically be recalculated.) Case Probability Number of Procedures Avg Revenue Bldg/Equip per Procedure Salvage Value Worst 25.0% 10 $800 $4,000,000 NPV ($5,501,433) Most Likely 50.0% Best 25.0% 220 1,000 5,000,000 875,020 25 1,200 6,000,000 6,651,083 100.0% Expected NPV $724,922 Standard Deviation $4,299,184 Coefficient of Variation 5.9

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Solution The Standard Deviation and Coefficient of Variation are calculated using the following form... View the full answer