1. Classify each characteristic as a qualitative or quantitative:

1.Time

2.Type of car

3.Town of birth

4.Examination grade

5.Daily rainfall

2.

3. Would you expect distributions of these variables to be uniform, unimodal, or bimodal? Symmetric or

skewed? Explain why.

(a) The number of songs that each student in your class has downloaded online

(b) Cost of each order from a mail-order catalogue for clothing

(c) Weights of bags of M&Ms that are labelled to contain 6 ounces

(d) Heights of students in your class

(e) Ages of shoppers in a convenience store near a university late Saturday night

(f) Number of children of shoppers in a toy store

(g) Amount of cash taken in by retail cashiers during a two-hour shift

(h) Number of packages processed each day by Federal Express in their hub location in Memphis, Tennessee, during August and the four weeks before Christmas

4. Some investors use the Sharpe ratio as a way of comparing the benefits of owning shares of stock in a company to the risks. The Sharpe ratio of a stock is defined as the ratio of the difference between the mean return on the stock and the mean return on government bonds (called the risk-free rate rf ) to the SD of the returns on the stock.

The mean return on government bonds is rf = 0.03% per day.

The table below describes the daily return of three stocks.

Note: Please see attached Picture for the company percentages