Question

A company manufactures wheels for in-line skates. The diameters of the wheels have a mean of 3 inches and a standard deviation of 0.1 inches. Because so many of their customers use the metric system, the company decided to report their production statistics in millimeters They report that the standard deviation is now 2.54 mm. A corporate executive is worried about this increase in variation. Should he be concerned

Answer 1

Answer: He should not be concerned

Step-by-step explanation:

The variation is still the same and has not changed because the only thing that changed are the units. A unit change does not mean that the diameter has changed, only the method of measuring it has changed.

Absolutely speaking, the diameter is still the same. A standard deviation of  0.1 inches is the same as a standard deviation of 2.54mm so the executive should not be worried.