Standard deviation and coefficient of variation

Average income in the United States and Denmark

Background You have the annual personal income of 11 people from the USA and 11 from Denmark. You have the mean incom
Task 1 Decide whether you have to use sample or population formula for the standard deviation and the coefficient of varia
Task 2 Calculate the standard deviation of income in the USA and in Denmark
Hint: You may start by calculating the mean and the variance
Task 3 Calculate the coefficient of variation of income in the USA and in Denmark
Task 4 Try to interpret the numbers you got

Solution:

Annual income USA Annual income Denmark Task 1:

$ 62,000.00 462,852.37 kr.
$ 64,000.00 470,317.73 kr.
$ 49,000.00 567,367.42 kr. Task 2:
$ 324,000.00 589,763.50 kr.
$ 1,264,000.00 500,179.17 kr.
$ 54,330.00 492,713.81 kr.
$ 64,000.00 515,109.89 kr. Task 3:
$ 51,000.00 507,644.53 kr.
$ 55,000.00 425,525.56 kr. Task 4:
$ 48,000.00 522,575.25 kr.
$ 53,000.00 500,179.17 kr.
nmark. You have the mean income for USA from previous exercises
viation and the coefficient of variation

The question is asking if this is a sample or a population. In other words, are those all the people in the US or Denmark, receiving salaries?
Obviously not. This is a sample, drawn from the population of all working people respectively in the USA and Denmark

Mean US $ 189,848.18 Mean Denmark 504,929.85 kr.

Variance US $² 133,433,409,536.36 Variance Denmark 2,098,548,471.10 kr.²
Standard deviation US $ 365,285.38 Standard deviation Denmark 45,809.92 kr.

Coefficient of var. US 1.92 Coefficient of var. Denmark 0.09

Denmark is a much more egalitarian country than the USA.

Not only the variance is smaller, but also the standard deviation of salaries.
You can get the feeling that almost all people in the country gravitate around the same income.
We can further calculate the median income to see if they differ.
Median US $ 55,000.00 Median Denmark 500,179.17 kr.
According to this sample, the average salary in the US is much higher ( $ 189,848 to 504,929.85 kr. = $75,642.41)
However, on the average American earns less than the average Danish, which is evident from the median salary.
Finally, the coefficients of variation of the salaries in the two countries are very different.
In the USA we have much higher variability of income, evident from the coeffcients of variation. In the USA the value is 1.92, while in Denmar
By all means, a coefficient of variation of 1.92 is extremely high, while 0.09 is extremely low.

Note that we only needed the coefficient of variation, because the currencies we used were different.
Had the salaries been in expressed in dollars for both datasets, a comparison of the standard deviations would be sufficient.
or Denmark, receiving salaries?

the value is 1.92, while in Denmark it is 0.09.

ould be sufficient.