Question

The data below represent the nationwide highest yields for one-year CDs and five-year CDs. a. First consider the data for one-year CDs. The variance is (Round to five decimal places as needed.) One-Year CD 5.34 5.32 5.31 5.29 5.26 Five-Year o CD 5.96 5.89 5.84 5.82 5.78 The standard deviation is (Round to four decimal places as needed.) The range is (Type an integer or a decimal. Do not round.) a. For one-year CDs and five-year CDs, separately compute the variance, standard deviation, range, and coefficient of variation. b. Based on the results of (a), do one-year CDs or five-year CDs have more variation in the highest yields offered? Explain. The coefficient of variation is %. (Round to four decimal places as needed.) Now consider the data for five-year CDs. The variance is (Round to five decimal places as needed.) The standard deviation is (Round to four decimal places as needed.) The range is (Type an integer or a decimal. Do not round.) The coefficient of variation is %. (Round to four decimal places as needed.) b. Choose the correct answer below. O A. The two investments have approximately the same variation since the difference in their standard deviations is less than 0.1. OB. One-year CDs have more variation because they have a lower variance, standard deviation, range, and coefficient of variation. O C. Five-year CDs have more variation because they have a higher variance, standard deviation, range, and coefficient of variation. OD. It cannot be determined

Answer 1