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.
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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.
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