If you were interested in comparing the dispersion of NPW to the dispersion of PHS, should you
Question:
If you were interested in comparing the dispersion of NPW to the dispersion of PHS, should you use the variance, the standard deviation, or the coefficient of variation’? Which variable—NPW or PHS—has the greater dispersion around its mean?
The following information from Best’s Aggregates and Averages can be used for question. You are given the following information on the property–casualty insurance industry. NPW (net premiums written) is a measure of the dollar value of premiums written in property–casualty insurance (such as auto insurance, home insurance, and so on). PHS (policyholders’
surplus) is a measure of the net worth, or equity, of an insurer:
Insurance industry Year 1967 1968 1969 1970 NPW 23,583 25,766 28,956 32,578 PHS 14,802 16,192 13,964 15,499
Step by Step Answer:
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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