EBK STATISTICS FOR BUSINESS & ECONOMICS
12th Edition
ISBN: 8220100460463
Author: Anderson
Publisher: CENGAGE L
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Textbook Question
Chapter 3, Problem 71SE
Morningstar tracks the performance of a large number of companies and publishes an evaluation of each. Along with a variety of financial data, Morningstar includes a Fair Value estimate for the price that should be paid for a share of the company’s common stock. Data for 30 companies are available in the file named Fair Value. The data include the Fair Value estimate per share of common stock, the most recent price per share, and the earning per share for the company (Morningstar Stocks 500, 2008).
- a. Develop a
scatter diagram for the Fair Value and Share Price data with Share Price on the horizontal axis. What is the samplecorrelation coefficient , and what can you say about the relationship between the variables? - b. Develop a scatter diagram for the Fair Value and Earnings per Share data with Earnings per Share on the horizontal axis. What is the sample correlation coefficient, and what can you say about the relationship between the variables?
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The Xhang Corporation operates five clothing suppliers in China to provide merchandise for Nike. Nike recently sought information from the five plants. One variable for which data was collected was the total money (in U.S. Dollars) the company spent on medical support for its employees in the first three months of the year. Data on number of employees at the plants are shown. These data are as follows:
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123
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The Census Bureau website gives several choices for "average income" in its historical income data. In 2017, the median income of American households was $68,145. The mean household income was $93,453. The median income of families was $75,938, and the mean family income was $100,400. The Census Bureau says, "Households consist of all people who occupy a housing unit. The term 'family' refers to a group of two or more people related by birth, marriage, or adoption who reside together." Explain carefully why mean incomes are higher than median incomes and why family incomes are higher than household incomes.
Chapter 3 Solutions
EBK STATISTICS FOR BUSINESS & ECONOMICS
Ch. 3.1 - Consider a sample with data values of 10, 20, 12,...Ch. 3.1 - Consider a sample with data values of 10, 20, 21,...Ch. 3.1 - Consider the following data and corresponding...Ch. 3.1 - Consider the following data. Period Rate of Return...Ch. 3.1 - Consider a sample with data values of 27, 25, 20,...Ch. 3.1 - Consider a sample with data values of 53, 55, 70,...Ch. 3.1 - The average number of minutes Americans commute to...Ch. 3.1 - During the 2007-2008 NCAA college basketball...Ch. 3.1 - Endowment income is a critical part of the annual...Ch. 3.1 - The cost of consumer purchases such as...
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