A sample of 20 financial analysts was asked to provide forecasts of earnings per share of a corporation for next year. The results are summarized in the following table:Forecast ($ per share) Number of Analysts9.95 < 10.45 210.45 < 10.95 810.95 < 11.45 611.45 < 11.95 311.95 < 12.45 1a. Construct the histogram.b. Determine the relative frequencies.c. Determine the cumulative frequencies.d. Determine and interpret the relative cumulative frequencies.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A sample of 20 financial analysts was asked to provide forecasts of earnings per share of a corporation for next year. The results are summarized in the following table:
Forecast ($ per share) Number of Analysts
9.95 < 10.45 2
10.45 < 10.95 8
10.95 < 11.45 6
11.45 < 11.95 3
11.95 < 12.45 1
a. Construct the histogram.
b. Determine the relative frequencies.
c. Determine the cumulative frequencies.
d. Determine and interpret the relative cumulative frequencies.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
