Is there a difference in the variation of the yields of different types of investments? The file CD Rate contains the yields for one-year certificates of deposit (CDs) and five-year CDs for 24 banks in the United States, as of June 21, 2012. Source: Data extracted from www.Bankrate.com, June 21, 2012.
a. For one-year 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 yields offered? Explain.