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. What interpretation can be made from the interquartile range of each stock?(1 point)

Responses

Stock A has more variability than Stock B.
Stock A has more variability than Stock B.

The stock price for Stock B is higher than the price for Stock A.
The stock price for Stock B is higher than the price for Stock A.

The price of Stock B is higher than the price of Stock A by 7.
The price of Stock B is higher than the price of Stock A by 7.

Stock B has more variability than Stock A.

1 answer

The correct interpretation is:

Stock B has more variability than Stock A.

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