A plumbing supplier's mean monthly demand for vinyl washers is 28,237 with a standard deviation of 8,028. The mean monthly demand for steam boilers is 9.8 with a standard deviation of 1.7. Compare the dispersion of these distributions. Which demand pattern has more relative variation?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 32P: Sulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows:...
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A plumbing supplier's mean monthly demand for vinyl washers is 28,237 with a standard
deviation of 8,028. The mean monthly demand for steam boilers is 9.8 with a standard deviation
of 1.7. Compare the dispersion of these distributions. Which demand pattern has more relative
variation?
Multiple Choice
The demand for steam boilers has more relative variation.
The demand for vinyl washers has more relative variation.
Both exhibit similar relative variation.
Transcribed Image Text:A plumbing supplier's mean monthly demand for vinyl washers is 28,237 with a standard deviation of 8,028. The mean monthly demand for steam boilers is 9.8 with a standard deviation of 1.7. Compare the dispersion of these distributions. Which demand pattern has more relative variation? Multiple Choice The demand for steam boilers has more relative variation. The demand for vinyl washers has more relative variation. Both exhibit similar relative variation.
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