We want to know which set has the greater standard deviation - that is, we want to know in which set the elements tend to be further from the mean. We don't care at all how big the mean is; we only care how far away elements are from the mean. So Statement 2 here is completely useless.
Statement 1 is also not sufficient. The range of a set only takes into account two elements: the largest and the smallest. The standard deviation, on the other hand, is based on the distances from *every* element to the mean. If you take the two sets below:
A = {0, 50, 50, 50, 50, 50, 50, 50, 50, 50, 50, 50, 100}
and
B = {1, 1, 1, 1, 1, 1, 50, 99, 99, 99, 99, 99, 99}
the first set has a greater range than the second set. But because most of the elements in set A are clustered around the mean, while most of the elements in set B are far from the mean, set A will have a much smaller standard deviation than set B.
The answer is E.
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