Dividend Yield A dividend is a payment from a publicly

Chapter 2, Problem 34E

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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?

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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.

  1. The frequency distribution of data.
  2. The relative frequency distribution of the data.
  3. The frequency histogram of the data.
  4. The relative frequency histogram of the data.
  5. We have to determine the shape of the distribution.
  6. We have repeat the steps by using a class width of 0.8.
  7. We have to determine which frequency distribution provide better summary of the data.

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