Question

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

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 or variability of the middle 50% of the data. Since Stock B has a higher IQR (11) compared to Stock A (3), it indicates that Stock B's prices are more spread out and experience greater variability than those of Stock A. The other statements regarding the absolute price levels or differences in price cannot be inferred solely from the IQR.