Solution Found!
Business and Finance Use the data collected in data
Chapter 6, Problem 1DP(choose chapter or problem)
Problem 1DP
Business and Finance Use the data collected in data project 1 of Chapter 2 regarding earnings per share to complete this problem. Use the mean and standard deviation computed in data project 1 of Chapter 3 as estimates for the population parameters. What value separates the top 5% of stocks from the others?
REFERENCE QUESTION
Consider the 30 stocks listed as the Dow Jones Industrials. For each, find their earnings per share. Randomly select 30 stocks traded on the NASDAQ. For each, find their earnings per share. Create a frequency table with 5 categories for each data set. Sketch a histogram for each. How do the two data sets compare?
Questions & Answers
QUESTION:
Problem 1DP
Business and Finance Use the data collected in data project 1 of Chapter 2 regarding earnings per share to complete this problem. Use the mean and standard deviation computed in data project 1 of Chapter 3 as estimates for the population parameters. What value separates the top 5% of stocks from the others?
REFERENCE QUESTION
Consider the 30 stocks listed as the Dow Jones Industrials. For each, find their earnings per share. Randomly select 30 stocks traded on the NASDAQ. For each, find their earnings per share. Create a frequency table with 5 categories for each data set. Sketch a histogram for each. How do the two data sets compare?
ANSWER:Step 1 of 2
Given that,
The data showing the earnings per share of n = 30 companies is:
Company Name |
EPS |
3M |
5.95 |
ALCOA |
0.53 |
American Express |
4.09 |
AT&T |
0.66 |
Bank of |
-0.03 |
Boeing |
5.32 |
Caterpillar |
7.4 |
Chevron |
13.44 |
Cisco Systems |
1.28 |
Coca-Cola |
3.69 |
Disney |
2.64 |
DuPont |
3.68 |
Exxon Mobil |
8.42 |
General Electric |
1.23 |
Hewlett Packard |
3.27 |
Home Depot |
2.33 |
IBM |
13.08 |
Intel |
2.4 |
Johnson & Johnson |
3.48 |
JP Morgan Chase |
4.47 |
Kraft Foods |
1.83 |
McDonalds |
5.27 |
Merck |
2.03 |
Microsoft |
2.76 |
Pfizer |
1.09 |
Procter & Gamble |
3.4 |
Travelers |
3.35 |
United Technologies |
5.5 |
Verizon Communications |
0.85 |
Wal Mart |
4.44 |
It is required to compute the value separates the top 5% of stocks from the others.