A stock analyst is comparing the interquartile range of the day's stock prices of Stock A and Stock B. Stock A has an interquartile range of 3, and Stock B has an interquartile range of 11.

Question

What interpretation can be made from the interquartile range of each stock? (1 point)
• Stock B has more variability than Stock A.
• Stock A has more variability than Stock B.
• The price of Stock B is higher than the price of Stock A by 7.
• The stock price for Stock B is higher than the price for Stock

Answer 1

The correct interpretation from the interquartile ranges provided is:

• Stock B has more variability than Stock A.

The interquartile range (IQR) measures the spread of the middle 50% of the data. A higher IQR indicates greater variability in the stock prices. Since Stock B has an IQR of 11 compared to Stock A's IQR of 3, it indicates that Stock B's prices are more spread out and thus have more variability.