A major automobile maker has two models of sedans. The first model has been shown to get an average of 27 mpg on the highway with a standard deviation equal to 5 mpg. The second model gets 33 mpg on average with a standard deviation of 8 mpg. Based on this information the first car model is relatively more variable than the second car model.

Question

Quizplus · Accepted Answer

The coefficient of variation (CV), which is the standard deviation divided by the mean, is used to compare variability relative to the mean between datasets. For the first model, CV = 5 / 27. For the second model, CV = 8 / 33. The second model has a higher CV, indicating it is relatively more variable.

A Major Automobile Maker Has Two Models of Sedans