Description
Directions:
a)Enter all your answers into this Word document (immediately following the relevant question) and submit the entire document. IMPORTANT: The name of your Word document MUST begin with your LAST NAME.
b)When you use a Template to calculate an answer, copy and paste the results into this document.
c)While putting your answers in a different color font is helpful, please DO NOT use red font since this is the color used to provide feedback on your answers.
1.The following table shows a data set containing information for 25 of the shadow stocks tracked by the American Association of Individual Investors. Shadow stocks are common stocks of smaller companies that are not closely followed by Wall Street analysts.
a.How many variables are in the data set?
b.Which of the variables are categorical and which are quantitative?
c.For the Exchange variable, show the frequency and the percent frequency for AMEX, NYSE, and OTC. Construct a bar graph similar to Figure 1.4 (in the textbook) for the Exchange variable.
d.Show the frequency distribution for the Gross Profit Margin using he five intervals: 0 – 14.9, 15 – 29.9, 30 – 44.9, 45 – 59.9, and 60 – 74.9. Construct a histogram similar to Figure 1.5 (in the textbook).
e.What is the average price/earnings ratio?
DATA SET FOR 25 SHADOW STOCKS
Company | Exchange | Ticker Symbol | Market Cap ($ millions) | Price/ Earnings Ratio | Gross Profit Margin (%) |
DeWolfe Companies | AMEX | DWL | 36.4 | 8.4 | 36.7 |
North Coast Energy | OTC | NCEB | 52.5 | 6.2 | 59.3 |
Hansen Natural Corp. | OTC | HANS | 41.1 | 14.6 | 44.8 |
MarineMax, Inc. | NYSE | HZO | 111.5 | 7.2 | 23.8 |
Nanometrics Inc. | OTC | NANO | 228.6 | 38.0 | 53.3 |
Team Staff, Inc. | OTC | TSTF | 92.1 | 33.5 | 4.1 |
Environmental Tectonics | AMEX | ETC | 51.1 | 35.8 | 35.9 |
Measurement Specialties | AMEX | MSS | 101.8 | 26.8 | 37.6 |
SEMCO Energy, Inc. | NYSE | SEN | 193.4 | 18.7 | 23.6 |
Party City Corporation | OTC | PCTY | 97.2 | 15.9 | 36.4 |
Embrex, Inc. | OTC | EMBX | 136.5 | 18.9 | 59.5 |
Tech/Ops Sercon, Inc. | AMEX | TO | 23.2 | 20.7 | 35.7 |
ARCADIS NV | OTC | ARCAF | 173.4 | 8.8 | 9.6 |
Qiao Xing Universal Tele. | OTC | 64.3 | 22.1 | 30.8 | |
Energy West Inc. | OTC | EWST | 29.1 | 9.7 | 16.3 |
Barnwell Industries, Inc. | AMEX | BRN | 27.3 | 7.4 | 73.4 |
Innodata Corporation | OTC | INOD | 66.1 | 11.0 | 29.6 |
Medical Action Industries | OTC | MDCI | 137.1 | 26.9 | 30.6 |
Instrumentarium Corp. | OTC | INMRY | 240.9 | 3.6 | 52.1 |
Petroleum Development | OTC | PETD | 95.9 | 6.1 | 19.4 |
Drexler Technology Corp. | OTC | DRXR | 233.6 | 45.6 | 53.6 |
Gerber Childrenswear, Inc. | NYSE | GCW | 126.9 | 7.9 | 25.8 |
Gaiam, Inc, | OTC | GAIA | 295.5 | 68.2 | 60.7 |
Artesian Resources Corp. | OTC | ARTNA | 62.8 | 20.5 | 45.5 |
York Water Company | OTC | YORW | 92.2 | 22.9 | 74.2 |
2.People often wait till middle age to worry about having a healthy heart. However, recent studies have shown that earlier monitoring of risk factors such as blood pressure can be very beneficial (The Wall Street Journal, January 10, 2012). Having higher than normal blood pressure, a condition known as hypertension, is a major risk factor for heart disease. Suppose a large sample of individuals of various ages and gender was selected and that each individual’s blood pressure was measured to determine if they have hypertension. For the sample data, the following table shows the percentage of individuals with hypertension.
a.Develop a side-by-side bar chart with age on the horizontal axis, the percentage of individuals with hypertension on the vertical axis, and side-by-side bars based on gender.
b.What does the display you developed in part (a), indicate about hypertension and age?
c.Comment on differences in gender.
Age | Male | Female |
20 - 34 | 11.0% | 9.0% |
35 – 44 | 24.0% | 19.0% |
45 – 54 | 39.0% | 37.0% |
55 – 64 | 57.0% | 56.0% |
65 – 74 | 62.0% | 64.0% |
75 + | 73.3% | 79.0% |
3.The department of transportation’s study on driving speed and miles per gallon for midsize automobiles resulted in the data below.
a.Plot the speed and miles per gallon using a scatter plot with speed on the horizontal axis.
b.Compute the sample mean and standard deviation for each variable.
c.Compute the sample correlation coefficient. Is there a positive or negative correlation between these two variables? Comment.
Speed (Miles per Hour) | 30 | 50 | 40 | 55 | 30 | 25 | 60 | 25 | 50 | 55 |
Miles per Gallon | 28 | 25 | 25 | 23 | 30 | 32 | 21 | 35 | 26 | 25 |
4.The U.S. Census Bureau serves as the leading source of quantitative data about the nation’s people and economy. The following cross-tabulation shows the number of households (1,000s) and the household income by the highest of level of education for the head of the household (U.S. Census Bureau website, 2013). Only households in which the head has a high school diploma or more are included.
a.Develop a joint probability table
b.What is the probability of the head of one of these households having a master’s degree or more education?
c.What is the probability of a household headed by someone with a high school diploma earning $100,000 or more?
d.What is the probability of one of these households having an income below $25,000?
e.What is the probability of a household headed by someone with a bachelor’s degree earning less than $25,000?
f.Is household income independent of educational level?
Highest Level of Education | Household Income | ||||
Under $25,000 | $25,000 to $49,999 | $50,000 to $99,999 | $100,000 and Over | TOTAL | |
High School Graduate | 9880 | 9970 | 9441 | 3482 | 32,773 |
Bachelor’s Degree | 2484 | 4164 | 7666 | 7817 | 22,131 |
Master’s Degree | 685 | 1205 | 3019 | 4094 | 9003 |
Doctoral Degree | 79 | 160 | 422 | 1076 | 1737 |
TOTAL | 13,128 | 15,499 | 20,548 | 16,469 | 65,644 |
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
OK - these are done. I'm also attaching the Excel file that was used to do the graphs/calculations as well for transparency.
MNS601 – HOMEWORK #1
Name: ___________________
Directions:
a) Enter all your answers into this Word document (immediately following the
relevant question) and submit the entire document. IMPORTANT: The name of
your Word document MUST begin with your LAST NAME.
b) When you use a Template to calculate an answer, copy and paste the results into
this document.
c) While putting your answers in a different color font is helpful, please DO NOT use
red font since this is the color used to provide feedback on your answers.
1. The following table shows a data set containing information for 25 of the shadow stocks
tracked by the American Association of Individual Investors. Shadow stocks are common
stocks of smaller companies that are not closely followed by Wall Street analysts.
a. How many variables are in the data set? There are four variables in the data set:
exchange, market cap, price/earnings ratio and gross profit margin. Ticker symbol is
an identifier, not a variable.
b. Which of the variables are categorical and which are quantitative? Exchange is
categorical; market cap, price/earnings ratio, gross profit margin are all quantitative.
c. For the Exchange variable, show the frequency and the percent frequency for AMEX,
NYSE, and OTC. Construct a bar graph similar to Figure 1.4 (in the textbook) for the
Exchange variable.
Row Labels
Counts
Frequency
AMEX
5
20.00%
NYSE
3
12.00%
OTC
17
68.00%
Grand Total
25
100.00%
d. Show the frequency distribution for the Gross Profit Margin using he five intervals: 0
– 14.9, 15 – 29.9, 30 – 44.9, 45 – 59.9, and 60 – 74.9. Construct a histogram similar
to Figure 1.5 (in the textbook).
e. What is the average price/earnings ratio? 20.2
DATA SET FOR 25 SHADOW STOCKS
Company
Exchange
Ticker
Symbol
Market
Price/
Cap ($ Earnings
millions)
Ratio
Gross
Profit
DeWolfe Companies
North Coast Energy
Hansen Natural Corp.
MarineMax, Inc.
Nanometrics Inc.
Team Staff, Inc.
Environmental Tectonics
Measurement Specialties
SEMCO Energy, Inc.
Party City Corporation
Embrex, Inc.
Tech/Ops Sercon, Inc.
ARCADIS NV
Qiao Xing Universal Tele.
Energy...