If volatility of a variable during 2000-2014 is defined as `("Maximum vlaue -Minimum value ")/("Average value")` , then which of the following is true ?

Options

A. Price per units has highest volatility
B. Cost per cent unit has highest volatility
C. Total profit has highest volatility
D. Revenue has highest volatility

Answer

C

Explanation

Checking option (a).
Voltatility per unit `=(15-8)/((126)/(11))=(177)/(126)=0.611`
Checking of option (b).
Total cost = Revenue - Profit
Total cost = Revenue- Profit
`=(700+1400+1200+900+1100+400+200+700+600+800+900)-(0+100+300+150+0+150+100+200+0+400+300)`
=89-1700=7200
Average cost per unit `=(7200)/(11)`
Volatility cost per unit = `((1400-100)-(200-100))/(7200)`
`=(1300-100)/(7200)xx11=1.833`
Checking option (c).
Average profit `=(1700)/(11)`
`:.` Profit volatility `=(400-0)/((1700)/(1))=(44)/(17)=2.588`
Checking option (d),
Average revenue `=(8600)/(11)`
`:.` Revenue volatility `(1400-200)/((8600)/(11))`
`=(132)/(86)=1.535`
`:.` Total profit has highest volatility.