Using the data given. Determine the relative variability of each divisions sales

Question

Using the data given. Determine the relative variability of each divisions sales as compared to that of the consolidated firm. Which one is the riskiest? Divisional Breakdown of Quarterly Revenues Quarter Defense Products Consumer Products Industrial Products Consolidated 1$2,800,000 $1,725,000 $1,776,750 $1,620,000 $6,145 1,668,600 $6.385.350 1,718,658 $6,635,711 1,770,218 $6,896,522 $1,823,324 $1,999,748 $2,059,740 $3,573,588 $3,680,796 $3,791,220 $3,904,957 $4,022,105 $4,142,768 $4,267,051 $4,395,063 1.934,365 $7674,901 $1,992,396 $7.905,148 $2.052,168 $8,142,303 $2,185,178 $2,318.256 $2,459,438 $2,113,733 $8,386,572 $2,177,145 $2,242,459 $8,897,313 $2,309,733 $9,164,234 $2,609.217 494 $2,768,119 $2,450,395 $9,722,334 $4,662,722 $4.429,586 $2,599,624 $10,063,104 $2,677,613 $2,757,942 $10.773,142 $4,883,176 $10.411,951 $2,936,697 $3,024,798 $3,115,542 $3,209,008 $3,305,278 $5,281643 $2.925,300$11,534.351 $3,013,677 $11,935,310 $3,104,088 $12,350,496 $3.197,210 $12.780 422 $3,325,099 $13,319,383 $3,424,852 $13.848,713 $3,527.597 14,.400,422 $3,668.701 $15,010,765 $3.778,762 $15.611,294 $3,892 125 $16,237,350 $4,008,889 $16,830074 $5,941,130 $6,178,779 $6,487,714 $3,506.570 $3,611,767 $3,720.120 $3,831,724 $7.152,7095 $7,510.340 $8,280,150 $4,300,000

Explanation / Answer

(X-MEAN)2 (X-MEAN)2 (X-MEAN)2 (X-MEAN)2 Quarter Defence Products Consumer Products Industrial Products Consolidated Defence Products Consumer Products Industrial Products Consolidated 1 $2,800,000 $1,725,000 $1,620,000 $6,145,000 5753353918225 1220653748224 1107882553600 20757199784049 2 $2,940,000 $1,776,750 $1,668,600 $6,385,350 5101341718225 1108981698724 1007935681600 18624895341649 3 $3,087,000 $1,830,053 $1,718,658 $6,635,711 4458917908225 999558048841 909929025604 16526631567616 4 $3,241,350 $1,884,954 $1,770,218 $6,896,522 3830886280225 892794434884 814221084964 14474106115225 5 $3,403,418 $1,941,503 $1,823,324 $7,168,245 3222732268809 789128412241 721201783696 12480407348644 6 $3,573,588 $1,999,748 $1,878,024 $7,451,360 2640712750729 689039447056 631287455296 10560205624609 7 $3,680,796 $2,059,740 $1,934,365 $7,674,901 2303774516761 593041688464 544931858025 9157317523236 8 $3,791,220 $2,121,532 $1,992,396 $7,905,148 1980760686025 501688890000 462623066896 7816827547881 9 $3,904,957 $2,185,178 $2,052,168 $8,142,303 1673551020964 415578779716 384886233664 6546966159616 10 $4,022,105 $2,250,734 $2,113,733 $8,386,572 1384175780100 335354493604 312287615929 5356609369225 11 $4,142,768 $2,318,256 $2,177,145 $8,638,169 1114812887409 261710003776 245436022225 4255300614244 12 $4,267,051 $2,387,803 $2,242,459 $8,897,313 867811486096 195389636841 184986870201 3253312045636 13 $4,395,063 $2,459,438 $2,309,733 $9,164,234 645695816704 137191715236 131643431929 2361671253529 14 $4,526,915 $2,533,221 $2,379,025 $9,439,161 451180890000 87978085321 86162796225 1592255327716 15 $4,662,722 $2,609,217 $2,450,395 $9,722,334 287181307449 48670978225 49357287225 957800840929 16 $4,429,586 $2,687,494 $2,523,907 $9,640,987 591405602841 20260106244 22097714409 1123642400400 17 $4,695,361 $2,768,119 $2,599,624 $10,063,104 253264588516 3808494369 5319660096 406920237409 18 $4,883,176 $2,851,162 $2,677,613 $10,411,951 99501762721 454968900 25532809 83553371136 19 $5,078,503 $2,936,697 $2,757,942 $10,773,142 14426892544 11420128225 7290085924 5203458225 20 $5,281,643 $3,024,798 $2,840,680 $11,147,121 6893648784 38011741156 28264334400 199017700996 21 $5,492,909 $3,115,542 $2,925,900 $11,534,351 86608958436 81630204100 64181155600 694462222336 22 $5,712,625 $3,209,008 $3,013,677 $11,935,310 264206280100 143774438976 116360807689 1523503895809 23 $5,941,130 $3,305,278 $3,104,088 $12,350,496 551328525225 226048898916 186216414784 2720813961121 24 $6,178,775 $3,404,437 $3,197,210 $12,780,422 960713625600 330170906025 275257622500 4323966742225 25 $6,487,714 $3,506,570 $3,325,099 $13,319,383 1661776231801 457974320644 425807146521 6855892877376 26 $6,812,100 $3,611,767 $3,424,852 $13,848,719 2603333845225 611422344225 565943253264 9908090834944 27 $7,152,705 $3,720,120 $3,527,597 $14,400,422 3818467728100 792612722944 731088271369 13685671342225 28 $7,510,340 $3,831,724 $3,668,701 $15,010,765 5344072475625 1003787579664 992296891881 18574014018564 29 $7,885,857 $3,946,675 $3,778,762 $15,611,294 7221269566564 1247338286649 1223682864804 24110918422369 30 $8,280,150 $4,065,075 $3,892,125 $16,237,350 9495857956225 1525825269049 1487338789225 30651093813649 31 $8,694,157 $4,187,028 $4,008,889 $16,890,074 12218813873764 1841980982416 1785775196241 38304550330489 32 $9,400,000 $4,300,000 $4,125,000 $17,825,000 17651635918225 2161393948224 2109581953600 50751276264049 Total $166,355,684 $90,554,621 $85,521,909 $342,432,214 98560466716242 18774675401879 17621300462195 338644098357126 Calculate the Average Average 5198615 2829832 2672560 10701007 1754997 765969 742068 3253095 Calculate the Standard Deviation Using the Formula (x-Mean)2/n STANDARD DEVIATION 1754997.033 765969.0635 742068.487 3253095.153 Calculate Cofficient of variation by using the formula SD/Mean COEFFICIENT OF VARIATION 0.337589345 0.270676515 0.27766205 0.303998983 Calculate CV Ratio of each to the consolidated COEFFICIENT OF VARIATION Ratio 1.110494981 0.890386251 0.91336506 The Calculations Shows the Defence division is the riskiest one

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