Question: for Module 3, Descriptive Analysis The coefficient of variation assesses the volatility and relative risk of the revenue generation. As a result, which state has
for Module 3, Descriptive Analysis The coefficient of variation assesses the volatility and relative risk of the revenue generation. As a result, which state has a more stable revenue source over time and which state can handle cash flows and capital budget expenditures more readily? The more stable the revenue collections, the lower the standard deviation and the coefficient of variability. Conversely, the less stable the revenue collections, the higher the standard the coefficient of variability. Lower stability and higher volatility mean more risk in estimating the future revenues needed to fund state obligations. What do the data indicate about State A and State B
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