Question

a. calculate the mean and the standard deviation for monthly rent. note: round your answers to 2 decimal places.
mean 1,222.93
standard deviation 424.80
b. calculate the mean and the standard deviation for square footage. note: round your answers to 2 decimal places.
mean 1,286.03
standard deviation 645.81
c. which variable exhibits greater relative dispersion?
square footage
monthly rent

Explanation:

Step1: Recall coefficient - of - variation formula

The coefficient of variation (CV) is given by $CV=\frac{\sigma}{\mu}\times100\%$, where $\sigma$ is the standard deviation and $\mu$ is the mean.

Step2: Calculate CV for monthly rent

For monthly rent, $\mu_{1}=1222.93$ and $\sigma_{1}=424.80$. Then $CV_{1}=\frac{424.80}{1222.93}\times 100\%\approx 34.74\%$.

Step3: Calculate CV for square footage

For square footage, $\mu_{2}=1286.03$ and $\sigma_{2}=645.81$. Then $CV_{2}=\frac{645.81}{1286.03}\times 100\%\approx 50.22\%$.

Step4: Compare CV values

Since $50.22\%>34.74\%$, square footage has greater relative dispersion.

Answer:

Square footage