Question 18 Marks
Prices of peanut packets in various places of two cities are given below. In which city, prices were more stable?
| Prices in city A | 20 | 22 | 19 | 23 | 16 |
| Prices in city B | 10 | 20 | 18 | 12 | 15 |
Answer
View full question & answer→Coefficients of variation of prices in city A.
Arrange in ascending order we get, 16, 19, 20, 22, 23
Assumed mean = 20
For city A
$
\begin{aligned}
& \text { Here } \sum x_{ i }=100, \sum d _{ i }=0, \sum d _{ i }^2=30 \\
& \bar{x}=\frac{\sum x_{ i }}{ n } \\
& =\frac{100}{5} \\
& \Rightarrow \bar{x}=20
\end{aligned}
$
Standard deviation $(\sigma)=\sqrt{\frac{\sum d _{ i }^2}{ n }-\left(\frac{\sum d _{ i }}{ n }\right)^2}$
$
\begin{aligned}
& =\sqrt{\frac{30}{5}-\left(\frac{0}{5}\right)^2} \\
& =\sqrt{6}
\end{aligned}
$
$(\sigma)=2.45$
Coefficient of variation $=\frac{\sigma}{\bar{x}} \times 100$
$
=\frac{2.45}{20} \times 100
$
= 12.25%
Coefficient of variation = 12.25%
Coefficients of variation of prices in city B.
Arrange in ascending order we get, 10, 12, 15, 18, 20
Assumed mean = 15
For city B
$
\begin{aligned}
& \text { Here } \sum x_{ i }=75, \sum d _{ i }=0, \sum d _{ i }^2=68 \\
& \bar{x}=\frac{\sum x_{ i }}{ n }=\frac{75}{5}=15
\end{aligned}
$
$
\text { Standard deviation }(\sigma)=\sqrt{\frac{\sum d _{ i }^2}{ n }-\left(\frac{\sum d _{ i }}{ n }\right)^2}
$
$
\begin{aligned}
& =\sqrt{\frac{68}{5}-\left(\frac{0}{5}\right)^2} \\
& =\sqrt{13.6} \\
& =3.69 \\
& \text { Coefficient of variation }=\frac{\sigma}{\bar{x}} \times 100 \\
& =\frac{3.69}{15} \times 100 \\
& =24.6 \%
\end{aligned}
$
Prices in city $A$ is more stable ...(since $12.25 \%<24.6 \%)$
Arrange in ascending order we get, 16, 19, 20, 22, 23
Assumed mean = 20
| $x_i$ | $d_i = x_i − A$ | $d_i^2$ |
| 1 | − 4 | 16 |
| 19 | − 1 | 1 |
| 20 | 0 | 0 |
| 22 | 2 | 4 |
| 23 | 3 | 9 |
| $\sum x_{ i }=100$ | $\sum d _{ i }=0$ | $\sum d _{ i }^2= 3 0$ |
For city A
$
\begin{aligned}
& \text { Here } \sum x_{ i }=100, \sum d _{ i }=0, \sum d _{ i }^2=30 \\
& \bar{x}=\frac{\sum x_{ i }}{ n } \\
& =\frac{100}{5} \\
& \Rightarrow \bar{x}=20
\end{aligned}
$
Standard deviation $(\sigma)=\sqrt{\frac{\sum d _{ i }^2}{ n }-\left(\frac{\sum d _{ i }}{ n }\right)^2}$
$
\begin{aligned}
& =\sqrt{\frac{30}{5}-\left(\frac{0}{5}\right)^2} \\
& =\sqrt{6}
\end{aligned}
$
$(\sigma)=2.45$
Coefficient of variation $=\frac{\sigma}{\bar{x}} \times 100$
$
=\frac{2.45}{20} \times 100
$
= 12.25%
Coefficient of variation = 12.25%
Coefficients of variation of prices in city B.
Arrange in ascending order we get, 10, 12, 15, 18, 20
Assumed mean = 15
| $x_i$ | $d_i = x_i − A$ | $d_i^2$ |
| 10 | − 5 | 25 |
| 12 | − 3 | 9 |
| 15 | 0 | 0 |
| 18 | 3 | 9 |
| 20 | 5 | 25 |
| $\sum x_{ i }=75$ | $\sum d_{ i }=0$ | $\sum d_{ i }^2=68$ |
$
\begin{aligned}
& \text { Here } \sum x_{ i }=75, \sum d _{ i }=0, \sum d _{ i }^2=68 \\
& \bar{x}=\frac{\sum x_{ i }}{ n }=\frac{75}{5}=15
\end{aligned}
$
$
\text { Standard deviation }(\sigma)=\sqrt{\frac{\sum d _{ i }^2}{ n }-\left(\frac{\sum d _{ i }}{ n }\right)^2}
$
$
\begin{aligned}
& =\sqrt{\frac{68}{5}-\left(\frac{0}{5}\right)^2} \\
& =\sqrt{13.6} \\
& =3.69 \\
& \text { Coefficient of variation }=\frac{\sigma}{\bar{x}} \times 100 \\
& =\frac{3.69}{15} \times 100 \\
& =24.6 \%
\end{aligned}
$
Prices in city $A$ is more stable ...(since $12.25 \%<24.6 \%)$