SOLUTION: The average price of the Panther convertible is P1.68M, with a standard deviation of P168, 000. The average price of the Suburban station wagon is P840, 000 with a standard deviati

Question 1171254: The average price of the Panther convertible is P1.68M, with a standard deviation of P168, 000. The average price of the Suburban station wagon is P840, 000 with a standard deviation of P84, 000. Compare the variability of the two prices.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
the ratio of their sd s is 168K/1.68M =0.1 for the first
and 84K/84000 K or 0.1 for the second.
-
The variability is twice as much for the first as it is for the second, but the second is 1/2 the value of the mean as the first, so the ratio of the variability to the mean is the same for both.
Since the variance is the sd ^2, there is a four-fold difference in the variance and a two-fold difference in the sd for a mean that is twice is much. Since the variance increases with the square, unlike the mean, this is consistent with the variability's (not variance) being the same.
RELATED QUESTIONS
After getting a 15% discount on the price of a new Chrysler Sebring convertible, Hellen... (answered by Earlsdon)

After getting a 15% discount on the price of a new Chrysler Sebring convertible, Helen... (answered by checkley75)

after gettinga 13% discount on the price if a new Chrysler Sebring convertible, Helen... (answered by Nate)

The average price of an ostrich-skin underpants is $ 12,837. The prices are normally... (answered by ikleyn)

The manager of the credit department for an oil company would like to determine whether... (answered by CPhill)

If the average price of a new one-family home is $246,300 with a standard deviation of... (answered by CPhill)

Armstrong Faber produces a standard number-two pencil called Ultra-Lite. Since Chuck... (answered by ElectricPavlov)

The results of a recent survey indicate that the average new car costs $23,000 with a... (answered by Boreal)

The results of a recent survey indicate that the average new car costs $23,000 with a... (answered by Theo)