1.

Which of the following factories is more stable with respect to daily production?Factory AFactory BAverage Daily Production (units)5048Standard deviation (units)1012

Answer»

We will determine the stability of factory in context to daily production by comparing the coefficient of variation of daily production of Factory A and Factory B.

Factory A:
x̄ = Average daily production = 50
s = Standard deviation =10
Coefficient of variation = \(\frac{s}{x¯}\) × 100
= 10 / 50 × 100 = 20 %

Factory B:
x̄ = Average daily production = 48
s = Standard deviation = 12
Coefficient of variation = \(\frac{s}{x¯}\) × 100
= 12 / 48 × 100 = 25 %
The coefficient.of variation of daily production of factory A is less than that of factory B. Hence, the- daily production of factory A is more stable.


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