A plumbing suppliers mean monthly demand for vinyl washers i

A plumbing supplier\'s mean monthly demand for vinyl washers is 21,679 with a standard deviation of 8,215. The mean monthly demand for steam boilers is 9.3 with a standard deviation of 1.2. Compare the dispersion of these distributions. Which demand pattern has more relative variation?

Solution

A plumbing supplier\'s mean monthly demand for vinyl washers is 21,679 with a standard deviation of 8,215.

The mean monthly demand for steam boilers is 9.3 with a standard deviation of 1.2.

This we can done by using Coefficient of variation.

Coefficient of variation (CV) = (SD / mean) * 100

CV for monthly demand for vinyl washers = (SD/mean) * 100

mean monthly demand for vinyl washers (mean) = 21679

standard deviation (SD) 8,215.

CV for demand for vinyl washers = (8215 / 21679) * 100 = 37.89%

CV for  demand for steam boilers = (SD / mean)*100

mean monthly demand for steam boilers (mean) = 9.3

standard deviation (SD) = 1.2

CV for demand for steam boilers = (1.2 / 9.3) * 100 = 12.90%

The demand for vinyl washers is subject to more relative variation than the demand for vinyl washers