9) The operations manager of a package delivery service is contemplating the pur

Question

9) The operations manager of a package delivery service is contemplating the purchase of a new fleet of trucks. When packages are efficiently stored in the truck for delivery, there are two major constraints that have to be considered - the weight (in pounds) and the volume (in cubic feet) for each item. Management takes a sample of 200 packages. The average weight is 26.0 pounds with a standard deviation of 3.9 pounds. The average volume for each package is 8.8 cubic feet with a standard deviation of 2.2 cubic feet Management is concerned with the variability of both the weight and volume. Management wants you to determine does the weight or volume have greater variability? Prove statistically

Explanation / Answer

Coefficient of variation, CV = standard deviation/mean

CV for weight = 3.9/26 = 0.15

CV for volume = 2.2/8.8 = 0.25

The coefficient of variation is higher for volume. So, volume is having higher variability

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