Question

A manufacturer of MP3 players surveyed one hundred retail stores in each of the firm's sales regions. An analyst noticed that in the South Atlantic region the average retial price was $165 (mean) and the standard deviation was $30. However, in the Mid-Atlantic region the mean price was $170, with a standard deviation of $15. What do these statistics tell us about these two sales regions

Answer 1

Kindly check explanation

Explanation:

Given :

South Atlantic region :

Mean price = $165

Standard deviation = $30

Mid-Atlantic region :

Mean price = $170

Standard deviation = $15

Based on the mean price computed for the 100 retail stores in the study, we can conclude that the price of MP3 in the south Atlantic region is lesser than that of the mid Atlantic region ;

$165 < $170

However, we can conclude that the variation in the prices of MP3 varies greatly from one store to another in the south Atlantic region with a standard deviation of $30 while in the Mid Atlantic region, the prices are closer and less variable from one store to the other.