A purchasing agent for a trucking company is shopping for replacement tires for their trucks from two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of 60,000 miles with a standard deviation of 10,000 miles. Supplier B's tires have an average life of
60,000 miles with a standard deviation of 2,000 miles. Which of the following statements is true?
A) The two distributions of tire life are the same
B) On average, Supplier A's tires have a longer life then Supplier B's tires
C) The life of Supplier B's tire is more predictable than the life of Supplier A's tires
D) The dispersion of Supplier A's tire life is less than the dispersion of Supplier B's tire life
E) The life of Supplier A's tire is more predictable than the life of Supplier B's tires

Question

Quizplus · Accepted Answer

Supplier B's tires have a smaller standard deviation, indicating that their tire life is more consistent and predictable compared to Supplier A's tires.

A Purchasing Agent for a Trucking Company Is Shopping for Replacement