The following table lists the 20 largest companies in the world in 2013 ranked by their market capitalizations (in billions of dollars). A company’s market capitalization is defined as the number of its shares multiplied by the price per share. This data can also be found in the Excel file market cap.xlsx.

Company Market Cap ($) Company Market Cap ($)

Apple 423 Procter & Gamble 210 Exxon 407 AT&T 203 Google 264 Pfizer 202 Berkshire Hathaway 252 Wells Fargo 189 General Electric 245 JPMorgan Chase 186 Wal-Mart 236 Coca-Cola 172 Microsoft 233 Oracle 165 IBM 227 Phillip Morris 156 Chevron 227 Merck 131 Johnson &

Johnson 211 Verizon 130

a. Determine the coefficient of variation.

b. Calculate the z-score for a company with a market capitalization of $200 billion.

c. Test to determine if the empirical rule holds true by determining the percentage of observations that fall within { one standard deviation from the mean.

d. Verify that Chebyshev’s Theorem holds true by determining the percentage of observations that fall within

{ two standard deviations from the mean.

AppendixLO1