Answer:
The random variables in this situation are the stock prices A and M.
The mean of Apple's stock prices is greater than the mean of Microsoft's stock prices.
The standard deviation of the price of Microsoft shares is smaller than that of Apple's share prices.
Step-by-step explanation:
The random variables in this situation are the stock prices A and M.
According to the text, it is stated that the values of Apple shares are usually higher than those of Microsoft shares. This implies that, since they are random variables, the mean of Apple's stock prices is greater than the mean of Microsoft's stock prices.
In stock prices, the standard deviation is a measure of the risk or stability of a share price. It is a measure of the price variation around its average value. The more stable the value of an action, the smaller the value of the standard deviation.
Then, according to the text, we can affirm that, since Microsoft's prices are more stable, the standard deviation of the price of Microsoft shares must be less than that of Apple's share prices.
