Al Bundy is evaluating a new advertising program that could increase shoe sales. Possible outcomes and probabilities of the outcomes are shown next. Compute the coefficient of variation (CV)

Possible Outcomes	Additional Sales in Units	Probabilities
Ineffective campaign	40	.20
Normal response	60	.50
Extremely effective	140	.30

CV= STANDARD DEVIAITON/ EXPECETD RETURN.

When the coefficient of variation is better than standard deviation? If the return of the investment is different among alternatives, then coefficient of variation of better than SD.

We have to calculate SD

1. Expected return
2. Variance
3. SD based on square root of the variance
4. CV based on the SD.