Chapter 5, Problem 16E

a)

To determine

To compare the distributions of prices over the three years.

Explanation of Solution

Given:

  

The shape of the distributions of 2002 and 2004 is roughly symmetric. The shape of the distribution of 2003 is right skewed. Also, there are outliers in the bottom of the year 2002 and the single outlier in the top of the year 2004.

b)

To determine

To the year which have least stable prices.

Answer to Problem 16E

The least stable prices appear in 2004.

Explanation of Solution

Given:

  

The higher the variability leads to least stable prices. Therefore, the spread of the 2004 seen higher as compare to other years. Hence, least stable prices appear in 2004.