#### For the data of Exercise 1.4 on page 13, compute both the mean and variance in “flexibility” for both company A and company B.

### Solution:

**For the company A:**

We know, based on our answer in Exercise 1.4, that the sample mean for samples in Company A is .

To compute for the sample variance, we shall use the formula

The formula states that we need to get the sum of , so we can use a table to solve for every sample.

*Note: You can refer to the solution of Exercise 1.7 on how to use a table to solve for the variance. *

The variance is

The standard deviation is just the square root of the variance. That is

**For Company B:**

Using the same method employed for Company A, we can show that the variance and standard deviation for the samples in Company B are

and .

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