The interquartile range (IQR) is a measure of statistical dispersion and provides insight into the variability of a dataset. It is calculated as the difference between the third quartile (Q3) and the first quartile (Q1) of the data.
In your case, Stock A has an interquartile range of 3, while Stock B has an interquartile range of 11. Here's what can be interpreted from this information:
-
Variability: Stock B’s interquartile range of 11 shows that its stock prices have more variability compared to Stock A’s interquartile range of 3. This means that the middle 50% of Stock B's prices are more spread out than those of Stock A.
-
Comparison of Stock Prices: Although you mentioned that the price for Stock B is higher than that of Stock A by $7, this information alone does not directly influence the interpretation of the IQR. The IQR focuses solely on the variability of the stock prices, regardless of the absolute price levels.
In conclusion, the correct interpretation is that Stock B has more variability in its price compared to Stock A. The higher absolute prices of Stock B do not negate or alter this variability analysis; they simply indicate a difference in price levels between the two stocks.