Question 1038003: the number of bicycles sold monthly by a biycle dealer was: 25,18,30,18,20,19,30,16,36,24. (I)Calculate inter-quartile range and interpret its meaning. (ii) If the dealer uses the formula: "mean + standard deviation" to decide on the opening stock level of bicycles at the beginning of next month, will he run out of stock during the month if he receives orders for 30 bicycles next month? Assume no extra bicycles can be ordered
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! The mean is 23.2 and the sd 6.6. If he rounds up to the next highest integer, he will have 30 and enough bicycles. If not, he will not have enough.
The IQR is 12, which is Q3-Q1. This is the middle half of the distribution, between the 25th and the 75th percentiles. It would give the owner a good idea of what the typical month's variability would be. Half would be on one side of the median (which happens to be 22) and the other half on the other side. It wasn't asked here, but if the IQR were used along with the median, he would not be expected to run out of stock.
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