The data below represent the nationwide highest yields for m

The data below represent the nationwide highest yields for money market accounts and five-year CDs.

Money Market

Five Year CD

5.35

5.96

5.32

5.88

5.29

5.83

5.31

5.82

5.26

5.79

A.)For money market accounts and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation. (List them all)

B.) Based on the results of (a), do money market accounts or five year CDAA have more variation in the highest yields offered? Explain.

For Part (B.) choose best correct answer:

A.) Five-year CDs have more variation because they have a higher variance, standard deviation, range, and coefficient of variation.

B.) It cannot be determined.

C.) Money market accounts have more variation because they have a lower variance, standard deviation, range, and coefficient of variation

D.) The two investments have approximately the same variation since the difference in their standard deviations is less than .1.

Money Market	Five Year CD
5.35	5.96
5.32	5.88
5.29	5.83
5.31	5.82
5.26	5.79

Solution

For money market accounts and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation. (List them all)

Money Market

Five Year CD

N

5

5

mean

5.3060

5.8560

sample standard deviation

0.0336

0.0666

sample variance

0.0011

0.0044

minimum

5.26

5.79

maximum

5.35

5.96

range

0.09

0.17

coefficient of variation (CV)

0.63%

1.14%

Based on the results of (a), do money market accounts or five year CDAA have more variation in the highest yields offered? Explain.

five year CDAA have more variation in the highest yields offered (variance 0.0044 > 0.0011)

For Part (B.) choose best correct answer:

A.) Five-year CDs have more variation because they have a higher variance, standard deviation, range, and coefficient of variation.

B.) It cannot be determined.

C.) Money market accounts have more variation because they have a lower variance, standard deviation, range, and coefficient of variation

D.) The two investments have approximately the same variation since the difference in their standard deviations is less than .1.

	Money Market	Five Year CD
N	5	5
mean	5.3060	5.8560
sample standard deviation	0.0336	0.0666
sample variance	0.0011	0.0044
minimum	5.26	5.79
maximum	5.35	5.96
range	0.09	0.17
coefficient of variation (CV)	0.63%	1.14%