A rental car company has noticed that the distribution of the number of miles customers put on rental cars per day is skewed to the right, with some occasional high outliers. The distribution has a mean of 80 miles and a standard deviation of 50 miles.
-Which of the following distributions would have the smallest standard deviation?
A) Number of miles put on a rental car in one day
B) Average number of miles put on a rental car per day across 5 customers
C) Average number of miles put on a rental car per day across 25 customers
D) Distributions of all of the above would have the same standard deviation.

Question

Quizplus · Accepted Answer

The standard deviation of the average decreases as the sample size increases. Therefore, the average number of miles per day across 25 customers will have the smallest standard deviation.

A Rental Car Company Has Noticed That the Distribution of the Number