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Chapter 1, Problem 18E(choose chapter or problem)
Problem 18E
Every corporation has a governing board of directors. The number of individuals on a board varies from one corporation to another. One of the authors of the article "Does Optimal Corporate Board Size Exist? An Empirical Analysis" (J. of Applied Finance, 2010: 57-69) provided the accompanying data on the number of directors on each board in a random sample of 204 corporations.
a. Construct a histogram of the data based on relative frequencies and comment on any interesting features.
b. Construct a frequency distribution in which the last row includes all boards with at least 18 directors. If this distribution had appeared in the cited article, would you be able to draw a histogram? Explain.
c. What proportion of these corporations have at most 10 directors?
d. What proportion of these corporations have more than 15 directors?
Questions & Answers
QUESTION:
Problem 18E
Every corporation has a governing board of directors. The number of individuals on a board varies from one corporation to another. One of the authors of the article "Does Optimal Corporate Board Size Exist? An Empirical Analysis" (J. of Applied Finance, 2010: 57-69) provided the accompanying data on the number of directors on each board in a random sample of 204 corporations.
a. Construct a histogram of the data based on relative frequencies and comment on any interesting features.
b. Construct a frequency distribution in which the last row includes all boards with at least 18 directors. If this distribution had appeared in the cited article, would you be able to draw a histogram? Explain.
c. What proportion of these corporations have at most 10 directors?
d. What proportion of these corporations have more than 15 directors?
ANSWER:
Problem 18E
Answer:
Step1:
We have Every corporation has a governing board of directors. The number of individuals on a board varies from one corporation to another. One of the authors of the article "Does Optimal Corporate Board Size Exist? An Empirical Analysis" (J. of Applied Finance, 2010: 57-69) provided the accompanying data on the number of directors on each board in a random sample of 204 corporations.
no. Directors |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
21 |
24 |
32 |
Frequency |
3 |
12 |
13 |
25 |
24 |
42 |
23 |
19 |
16 |