Question

According to the website, the asking prices for cars of a certain model are approximately normally distributed with a mean of $35,987 and a standard deviation of $607.50. What does the standard deviation represent in this context

a) The average asking price of the cars
b) The spread or variability in the asking prices
c) The highest asking price among the cars
d) The lowest asking price among the cars

Answer 1

The standard deviation represents the spread or variability in the asking prices of cars, indicating how much the prices vary from the mean.

Step-by-step explanation:

The standard deviation in the context of the asking prices for cars represents the spread or variability in the asking prices, not the average price itself. It indicates how much the asking prices deviate from the mean value of $35,987. A standard deviation of $607.50 suggests that most of the asking prices for cars of that model fall within a range that is $607.50 above or below the mean, assuming a normal distribution.

This measure describes how clustered or spread out the prices are. The larger the standard deviation, the more variable the prices are around the mean.The standard deviation represents the spread or variability in the asking prices of the cars. In this context, it measures how much the asking prices deviate from the mean of $35,987. A larger standard deviation indicates a wider range of asking prices, while a smaller standard deviation indicates a narrower range.