Question

True or false:

A. Assume that the median salaries of physicians and teachers in the city of Lima, Peru in 2016 were $ 62,000 and $ 33,000, respectively. It is also known that the standard deviation of their income is $ 7,200 and $ 1,200, respectively. Would you say that the relative variability of income for doctors is 6 times greater than that of income for teachers?

B.  The interquartile range of a data set only considers the maximum and minimum values.

Answer 1

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A.

Relative variability is designated by coefficient of variation (COV).

COV is calculated as follows: (standard deviation) / (expected value). The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from one another

COV for physicians = 62000/7200 = 8.6111

COV for teachers = 33000/1200 = 27.5000

So, Relative variability of teachers in fact way more than that of physicians/doctors.

hence. FALSE

B. False. it considers Q3 and Q1. it is the difference of Q3 and Q1 ( IQR = Q3-Q1), not max and min