Question

The following boxplots show the closing share prices for a sample of technology companies on the first trading days in August 2007 and in August 2002. Which of the following statements is​ true?
I. The median closing share price is higher in August 2007 compared to August 2002.
II. Closing prices are more variable in August 2007 compared to August 2002.
III. The distribution of closing prices in August 2007 appears more symmetric than the distribution of closing prices in August 2002.

Answer 1

Answer:

The statement (I), (II), (III) are all true or correct.

Explanation:

Solution

Given that:

The median is center line in box plots

Thus,

For august 2007, the  median=50

For august 2002  the median=45

Then,

In August 2007 it is very high

For this example, the statement (I) is true

Now,

The IQR for august 2007 is =Q3-Q1=90-20-70

The IQR for august 2002 =Q3-Q1=50-18=32

Thus, The statement (II) is true

The Box plot on left is symmetric as it divides the box into 2 halves

Box plot on right is skewed. for this, the statement (III) is also true or correct

Note: Kindly find attached diagram to this question given below