Question

• Given the following details. Mean life
of tyres of Brand A and Brand B are 16000
Km and 20000 Km respectively and
Standard deviation of life of tyres of Brand
A and Brand B are 2000 Km and 4000 km.
Which brand should be preferred?
Answer
A. Brand A
B. Brand B
C.
Brand A and B both
D. None of the Brands​

Answer 1

Answer:

Brand A

Explanation:

To compare which brand is useful , we must calculate out Coefficient of Variation of the data .

Coefficient of variation is calculated as :

CV - Standard Deviation / Mean x 100

Brand A = 2000/ 16000 x 100 = 12.5%

Brand B = 4000 / 20000 x 100 = 20%

Since the CV of Brand A is less in comparison to Brand B , Brand A should be preferred . Low CV means less variation and more useful .