<span>The annual depreciation expense is $9,000, calculated as follows Cost of the asset is $80,000 less $8,000 salvage value which reduces the cost to $72,000. Useful life is 8 years. To determine annual depreciation expense using straight-line method, divide asset cost of $72,000 by 8 years of useful life equals $9,000 per year.</span>
Given: Security Service Company: 1.4 1.8 1.6 1.7 1.5 1.5 1.7 1.6 1.5 1.6 Mean: 1.59 Standard Deviation: 0.014333
Other companies: 1.8 1.9 1.6 1.7 1.6 1.8 1.7 1.5 1.8 1.7 Mean: 1.71 Standard deviation: 0.014333
The coefficient of variation for security Service Company:
CV = (Standard Deviation/Mean) * 100.
= (0.14333/1.59) * 100
= 9.01%
The coefficient of variation for other companies:
CV = (Standard Deviation/Mean) * 100.
= (0.014333 / 1.71) * 100
= 8.38%
the limited data listed here show evidence of stealing by the security service company's employees because there is a significant difference in the variation.