jabhatta2
I said what i said in the yellow highlight because standard deviation is a 'spread' from the mean
Here was my thinking
Set A has more elements that are away from the mean
When it comes to (i), (ii) and (iii) -- there are fewer elements (within the same range) away from the mean. Thus I thought the SD must be smaller too.
jabhatta2 Standard deviation is not a 'spread' from the mean. Rather, it's the 'average spread per term', so, conceptually, imagine adding up all the deviations from the mean and
dividing that sum by the number of terms (this is not going to give you the true SD, but it's an approximation that works great for GMAT purposes).
How I think through statement (2) in this problem:
we have the same range, but fewer terms. This means that the terms that were removed are terms whose deviations were smaller, while the terms with the greatest deviations (the smallest and largest terms) remain. Therefore,
on average, the SD must increase.
Edited to add an analogy:
Class M has seven students, whose heights are all different. Three of those students are chosen to form Group N. Is the average height of the students in Group N greater than the average height of the students in Class M?
(1) ...
(2) The two tallest students in class M are members of Group N.