A recent study in the restaurant business determined that the mean tips for male waiters per hour of work are $6.78 with a standard deviation of $2.11. The mean tips per hour for female waiters are $7.86 with a standard deviation of $2.20. Based on this information, which of the following statements do we know to be true?
A) The distribution of tips for both males and females is right-skewed.
B) The variation in tips received by females is more variable than males.
C) The median tips for females exceeds that of males.
D) On a relative basis, males have more variation in tips per hour than do females.

Question

Quizplus · Accepted Answer

The coefficient of variation (CV), which measures relative variation, is calculated as the standard deviation divided by the mean. For males, CV = $2.11 / $6.78, and for females, CV = $2.20 / $7.86. The CV for males is higher, indicating more relative variation in tips per hour than females.

A Recent Study in the Restaurant Business Determined That the Mean