A stock analyst is comparing the interquartile range of the day's stock prices of Stock A and Stock B. Stock A has an interquartile range of 3, and Stock B has an interquartile range of 11. What interpretation can be made from the interquartile range of each stock?

Question

A stock analyst is comparing the interquartile range of the day's stock prices of Stock A and Stock B. Stock A has an interquartile range of 3, and Stock B has an interquartile range of 11. What interpretation can be made from the interquartile range of each stock?

• The price of Stock B is higher than the price of Stock A by 7.
• Stock A has more variability than Stock B.
• The stock price for Stock B is higher than the price for Stock A.
• Stock B has more variability than Stock A.

Answer 1

Based on the interquartile range comparison, the interpretation that can be made is that Stock A has more variability than Stock B, as its interquartile range is smaller. Therefore, Stock B is more consistent in its daily price movements compared to Stock A.