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Question -

From the prices of shares X and Y below, find out which is more stable in value:

X

35

54

52

53

56

58

52

50

51

49

Y

108

107

105

105

106

107

104

103

104

101



Answer -

From the given data,

Let us make the tableof the given data and append other columns after calculations.

X (xi)

Y (yi)

Xi2

Yi2

35

108

1225

11664

54

107

2916

11449

52

105

2704

11025

53

105

2809

11025

56

106

8136

11236

58

107

3364

11449

52

104

2704

10816

50

103

2500

10609

51

104

2601

10816

49

101

2401

10201

Total = 510

1050

26360

110290

We have to calculateMean for x,

Mean x̅ = ∑xi/n

Where, n = number ofterms

= 510/10

= 51

Then, Variance for x =

= (1/102)[(10× 26360) – 5102]

= (1/100) (263600 –260100)

= 3500/100

= 35

WKT Standard deviation= √variance

= √35

= 5.91

So, co-efficient ofvariation = (σ/ x̅) × 100

= (5.91/51) × 100

= 11.58

Now, we have tocalculate Mean for y,

Mean ȳ = ∑yi/n

Where, n = number ofterms

= 1050/10

= 105

Then, Variance for y =

= (1/102)[(10× 110290) – 10502]

= (1/100) (1102900 –1102500)

= 400/100

= 4

WKT Standard deviation= √variance

= √4

= 2

So, co-efficient ofvariation = (σ/ x̅) × 100

= (2/105) × 100

= 1.904

By comparing C.V. of Xand Y.

C.V of X > C.V. ofY

So, Y is more stablethan X.

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