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)

Question

Responses

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.
Stock B has more variability than Stock A.

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.

Answer 1

The correct interpretation based on 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 stock prices. Since Stock B has an IQR of 11 and Stock A has an IQR of 3, it shows that Stock B's prices are more spread out and therefore more variable than those of Stock A.