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sineoko [7]
3 years ago
13

A sample of customers from Barnsboro National Bank shows an average account balance of $315 with a standard deviation of $87.A s

ample of customers from Wellington Savings and Loan shows an average account balance of $8350 with a standard deviation of $1800.Which statement about account balances is correct?A) Barnsboro Bank has more variation.B) Wellington S&L has more variation.C) Both have the same variation.
Mathematics
1 answer:
cestrela7 [59]3 years ago
8 0

Answer:

A) Barnsboro Bank has more variation.

Step-by-step explanation:

Coefficient of Variation:

The coefficient of variation is given by the division of the standard deviation by the mean.

In this question:

The account balance with the highest coefficient of variation has more variation.

Barnsboro National Bank shows an average account balance of $315 with a standard deviation of $87.

So

cv = \frac{87}{315} = 0.2762

Wellington Savings and Loan shows an average account balance of $8350 with a standard deviation of $1800.

So

cv = \frac{1800}{8350} = 0.2156

Barnsboro Bank has the higher cv, so more variation, and the answer is given by option A.

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