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Dividend Yield A dividend is a payment from a publicly
Chapter 2, Problem 34E(choose chapter or problem)
Dividend Yield A dividend is a payment from a publicly traded company to its shareholders. The dividend yield of a stock is determined by dividing the annual dividend of a stock by its price. The following data represent the dividend yields (in percent) of a random sample of 28 publicly traded stocks of companies with a value of at least $5 billion.
1.7 |
0 |
1.15 |
0.62 |
1.06 |
2.45 |
2.38 |
2.83 |
2.16 |
1.05 |
1.22 |
1.68 |
0.89 |
0 |
2.59 |
0 |
1.7 |
0.64 |
0.67 |
2.07 |
0.94 |
2.04 |
0 |
0 |
1.35 |
0 |
0 |
0.41 |
With the first class having a lower class limit of 0 and a class width of 0.40:
(a) Construct a frequency distribution.
(b) Construct a relative frequency distribution.
(c) Construct a frequency histogram of the data.
(d) Construct a relative frequency histogram of the data.
(e) Describe the shape of the distribution.
(f) Repeat parts (a)-(e) using a class width of 0.8.
(g) Which frequency distribution seems to provide a better summary of the data?
Questions & Answers
QUESTION: Problem 34E
Dividend Yield A dividend is a payment from a publicly traded company to its shareholders. The dividend yield of a stock is determined by dividing the annual dividend of a stock by its price. The following data represent the dividend yields (in percent) of a random sample of 28 publicly traded stocks of companies with a value of at least $5 billion.
1.7 |
0 |
1.15 |
0.62 |
1.06 |
2.45 |
2.38 |
2.83 |
2.16 |
1.05 |
1.22 |
1.68 |
0.89 |
0 |
2.59 |
0 |
1.7 |
0.64 |
0.67 |
2.07 |
0.94 |
2.04 |
0 |
0 |
1.35 |
0 |
0 |
0.41 |
With the first class having a lower class limit of 0 and a class width of 0.40:
(a) Construct a frequency distribution.
(b) Construct a relative frequency distribution.
(c) Construct a frequency histogram of the data.
(d) Construct a relative frequency histogram of the data.
(e) Describe the shape of the distribution.
(f) Repeat parts (a)-(e) using a class width of 0.8.
(g) Which frequency distribution seems to provide a better summary of the data?
ANSWER:
Solution:
Step 1 of 4:
The data about the dividend yields of a random sample of 28 publicly traded stocks of companies is given.
We have to find the following.
- The frequency distribution of data.
- The relative frequency distribution of the data.
- The frequency histogram of the data.
- The relative frequency histogram of the data.
- We have to determine the shape of the distribution.
- We have repeat the steps by using a class width of 0.8.
- We have to determine which frequency distribution provide better summary of the data.