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29 A price-earnings ratio or P/E ratio is calculated as a firm's share price compared to the income or profit earned by the firm per

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29 A price-earnings ratio or P/E ratio is calculated as a firm's share price compared to the income or profit earned by the firm per share. Generally, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E ratio. The accompanying table shows companies that comprise the Dow Jones Industrial Average (DJIA) and their P/E ratios as of May 17, 2012 (at the time data were retrieved, the P/E ratio for one firm on the DJIA, Bank of America, was not available). Company P/E Ratio 3 3M (MMM ) 14 points Alcoa (AA) 24 American Express (AXP) 13 AT&T (T) 49 eBook Bank of America (BAC) Boeing (BA) 12 Caterpillar (CAT) 11 Print Chevron Corp. (CVX) 7 References Cisco Systems (CSCO) 12 Coca-cola (KO) 20 DuPont (DD) 13 ExxonMobil (XOM) 10 General Electric (GE) 15 Hewlett-packard (HPQ) 8 Home Depot (HD) 19 Intel ( INTC) 11 IBM ( IBM) 15 Johnson & Johnson (JNJ) 17 JPMorgan Chase (JPM) 8 Kraft Foods (KFT) 19 Mcdonald's (MCD) 17 Merck (MRK) 17 Microsoft (MSFT) 11 Pfizer (PFE) 21 Procter & Gamble (PG) 20 Travelers (TRV) 18 United Tech. Corp. (UTX) 13 Verizon Comm. (VZ) 44 Wal-Mart (WMT) 14 Walt Disney (DIS) 1629 Click here for the Excel Data File a. Calculate the 25th, 50th, and 75th percentiles. (Use the methodology shown in Section 3.2 of the text to calculate the percentiles. Do not round intermediate calculations. Round your answers to 1 decimal place.) 3 points 25th percentile eBook 50th percentile Print 75th percentile Referencesb-1. Select a box plot Box Plot A Box Plot B Box Plot C O Box Plot A O Box Plot B O Box Plot C b-2. Calculate the IQR, lower limit and upper limit to detect outliers. (Round your intermediate calculations to at least 4 decimal 9 places and final answers to 2 decimal places.) IQR Lower limit Upper limit ook rint ences b-3. Are there any outliers? O Yes O Nob-4. Is the distribution symmetric? O No. The distribution seems positively skewed. O No. The distribution seems negatively skewed. 0 Yes. The distribution is symmetric

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