Re: Prices of 5 different boats are $1200, $700, $1500, $1400 and $1100.
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12 Dec 2024, 02:16
We are given that the prices of 5 different boats are $\(\$ 1200, \$ 700, \$ 1500, \$ 1400 \& \$ 1100\)$; we need to compare the standard deviation of the prices if $\(150\)$ is added to the price of each boat with the standard deviation of the prices if the service charge of $\(10 \%\)$ is added to respective prices of ach boat.
Note: - When a value is added or subtracted from the each value of the set of numbers, the standard deviation of the set of numbers remains unchanged whereas if each of the values of set of numbers is multiplied or divided by a number, the new standard deviation comes by multiplying or dividing the original standard deviation by the same number.
Let us assume that the standard deviation of the original prices of the 5 boat is ' $n$ '
Now, as the prices of each of the boats got increased by $\(150\)$, so as per the note above, the standard deviation of the new prices would be the same = ' $\(n\)$ ' ( \(= Column A quantity\))
Next the standard deviation of the prices of the boats when $\(10 \%\)$ service charge is added to their respective values would result in $\(10 \%\)$ increase in the standard deviation i.e. it would become $\mathrm{n}+$ $10 \%$ of $\(n=n+(0.1) n=(1.1) n\)$
Clearly column B gets higher quantity when compared with column A, so the answer is (B).