Which dataset has greater variability, Company A or Company B, and why? Company A demonstrates greater variability as its interquartile range (IQR) is larger than that of Company B. Conversely, Company B exhibits greater variability since its IQR exceeds that of Company A. Both companies show equal variability as their IQRs have an identical range of 0.75. The variability of the companies cannot be determined solely from box plots.

Mathematics · College · Thu Feb 04 2021

Answered on

 From the information given, there is a contradiction in the statement provided. Initially, it is stated that Company A demonstrates greater variability because it has a larger IQR than Company B; however, it is later claimed that Company B exhibits greater variability because its IQR is greater than that of Company A, and then it is stated that both companies have equal variability with an IQR of 0.75. Lastly, it is mentioned that variability cannot be determined solely from box plots. To accurately determine which company has greater variability, we need consistent information.

Typically, if we are comparing two companies solely based on the interquartile range, the company with the larger IQR would generally be considered to have greater variability as the IQR measures the spread of the middle 50% of data. If the IQRs are the same, both companies would have equal variability in terms of the IQR measure. If the input is indeed correct and both IQRs are 0.75, then based on IQR alone, both companies exhibit equal variability.