The Panama Railroad Company was established in to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific Oceans. The following table provides annual returns for Panama Railroad stock from through . YearReturn on Panama Railroad Company Stock (%) 1853-1 1854-9 185519 18562 18573 185836 185921 186016 1861-5 186243 186344 186448 18657 186611 186723 186820 1869-11 1870-51 1871-42 187239 187342 187412 187526 18769 1877-6 187825 187931 188030 a. Select a graph of the annual returns on the stock. The New York Stock Exchange earned an annual average return of from through . A. B. C. D. Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange? b. Calculate the mean annual return on Panama Railroad Company stock from through (to decimal). Did the stock outperform the New York Stock Exchange over the same period? Answer Part b please

To calculate the mean annual return for the Panama Railroad Company stock from 1853 through 1880,…

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

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The Panama Railroad Company was established in to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific Oceans. The following table provides annual returns for Panama Railroad stock from through .

Year	Return on Panama Railroad Company Stock (%)

1853	-1
1854	-9
1855	19
1856	2
1857	3
1858	36
1859	21
1860	16
1861	-5
1862	43
1863	44
1864	48
1865	7
1866	11
1867	23
1868	20
1869	-11
1870	-51
1871	-42
1872	39
1873	42
1874	12
1875	26
1876	9
1877	-6
1878	25
1879	31
1880	30

a. Select a graph of the annual returns on the stock. The New York Stock Exchange earned an annual average return of from through .

A.
B.
C.
D.

Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange?

b. Calculate the mean annual return on Panama Railroad Company stock from through (to decimal).

Did the stock outperform the New York Stock Exchange over the same period?

Answer Part b please

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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