Bundle: Statistics for Business & Economics, Loose-Leaf Version, 13th + MindTap Business Statistics with XLSTAT, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337148092
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Textbook Question
Chapter 7, Problem 42SE
Jack Lawler, a financial analyst, wants to prepare an article on the Shadow Stock portfolio developed by the American Association of Individual Investors (AAII). A list of the 30 companies in the Shadow Stock portfolio as of March 2014 is contained in the DATAfile named ShadowStocks (AAII website March 27, 2014). Jack would like to select a simple random sample of 5 of these companies for an interview concerning management practices.
- a. In the DATAfile the Shadow Stock companies are listed in column A of an Excel worksheet. In column B we have generated a random number for each of the companies. Use these random numbers to select a simple random sample of 5 of these companies for Jack.
- b. Generate a new set of random numbers and use them to select a new simple random sample. Did you select the same companies?
a.
Expert Solution
To determine
Draw a random sample of 5 of the companies of Jack.
Answer to Problem 42SE
The random sample of 5 of these companies are tabulated below,
| Company |
Random Number |
| Hardinge Inc. (HDNG) | 0.4298384 |
| Medical Action Industries (MDCI) | 0.3792011 |
| Mitcham Industries, Inc. (MIND) | 0.4257654 |
| Rocky Brands Inc (RCKY) | 0.7556817 |
| Willis Lease Finance Corporati (WLFC) | 0.9063183 |
Explanation of Solution
Calculation:
Answers may vary. One of the possible answers is given:
The given data represents the Shadow Stock of 30 companies.
Software procedure:
Step-by-step software procedure to obtain a random samples using MINITAB software:
- Click on Calc > Random Data > Sample from columns.
- In Number of rows to sample, enter 5.
- In the Store in column, enter column C2.
- Click OK.
- Click on Data > Display Data
- Select C2.
- Click Ok.
Output using MINITAB software is as follows:
Therefore, the random sample of 5 of these companies is,
| Company |
Random Number |
| Hardinge Inc. (HDNG) | 0.4298384 |
| Medical Action Industries (MDCI) | 0.3792011 |
| Mitcham Industries, Inc. (MIND) | 0.4257654 |
| Rocky Brands Inc (RCKY) | 0.7556817 |
| Willis Lease Finance Corporati (WLFC) | 0.9063183 |
b.
Expert Solution
To determine
Generate a new simple random sample and compare it with the sample in part (a).
Answer to Problem 42SE
The random sample of 5 of these companies is,
| Company |
Random Number |
| Marlin Business Services Corp. (MRLN) | 0.6827254 |
| International Shipholding Corp (ISH) | 0.227759457 |
| VOXX International Corp (VOXX) | 0.629674789 |
| Hardinge Inc. (HDNG) | 0.429838402 |
| Rocky Brands Inc (RCKY) | 0.755681737 |
The random samples in these data set does not match with the random samples of part (a).
Explanation of Solution
Calculation:
Software procedure:
Step-by-step software procedure to obtain a random sample using MINITAB software is as follows,
- Click on Calc > Random Data > Sample from columns.
- In Number of rows to sample, enter 5.
- In the Store in column, enter column C2.
- Click OK
- Click on Data > Display Data
- Select C2.
- Click Ok.
Output using MINITAB software is as follows,
Therefore the random sample of 5 of these companies is,
| Company |
Random Number |
| Marlin Business Services Corp. (MRLN) | 0.6827254 |
| International Shipholding Corp (ISH) | 0.227759457 |
| VOXX International Corp (VOXX) | 0.629674789 |
| Hardinge Inc. (HDNG) | 0.429838402 |
| Rocky Brands Inc (RCKY) | 0.755681737 |
Here, it is observed that the drawn sample is not same as the sample drawn in part (a).
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Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include:
Mileage (mpg)
Number of Cylinders (cyl)
Displacement (disp)
Horsepower (hp)
Research: Google to understand these variables.
Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp
Mean
Median
First Quartile (Q1)
Second Quartile (Q2)
Third Quartile (Q3)
Fourth Quartile (Q4)
10th Percentile
70th Percentile
Skewness
Kurtosis
Document Your Results:
In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command”
In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…
Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include:
Mileage (mpg)
Number of Cylinders (cyl)
Displacement (disp)
Horsepower (hp)
Research: Google to understand these variables.
Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp
Mean
Median
First Quartile (Q1)
Second Quartile (Q2)
Third Quartile (Q3)
Fourth Quartile (Q4)
10th Percentile
70th Percentile
Skewness
Kurtosis
Document Your Results:
In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command”
In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…
Chapter 7 Solutions
Bundle: Statistics for Business & Economics, Loose-Leaf Version, 13th + MindTap Business Statistics with XLSTAT, 1 term (6 months) Printed Access Card
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- Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include: Mileage (mpg) Number of Cylinders (cyl) Displacement (disp) Horsepower (hp) Research: Google to understand these variables. Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp Mean Median First Quartile (Q1) Second Quartile (Q2) Third Quartile (Q3) Fourth Quartile (Q4) 10th Percentile 70th Percentile Skewness Kurtosis Document Your Results: In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command” In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…arrow_forward2 (VaR and ES) Suppose X1 are independent. Prove that ~ Unif[-0.5, 0.5] and X2 VaRa (X1X2) < VaRa(X1) + VaRa (X2). ~ Unif[-0.5, 0.5]arrow_forward8 (Correlation and Diversification) Assume we have two stocks, A and B, show that a particular combination of the two stocks produce a risk-free portfolio when the correlation between the return of A and B is -1.arrow_forward
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