$9$:$15$ C

Back WRDS Project$\_$ACC $315\_2024$

from the usual case. You don't need to actually do it in Excel.

$3.$ Data Analyzing $($Data & Answer with Words$)$

$3\mathrm{.}1$ Based on the industry level ratios table, use Pivot table to summarize data so that you can answer the following questions. $(14$ pts$)$

Which industry$($industries$)$ is$($are$)$:

a$.$ valued by the stock market the highest?

b$.$ the most profitable?

c$.$ the least likely to suffer from solvency issues?

d$.$ the least likely to suffer from liquidity issues?

e$.$ operated most efficiently?

f$.$ most R&D intensive?

g$.$ most heavily invested in advertising?

Hint:. Also, there are two variables for a$-$e $($except for R&D and advertising$),$ and they may not always lead to the same conclusion. So$,$ if you find a question hard to answer due to this reason, don't force yourself to pick one industry but give an explanation based on your data.

Would you rather use only one variable for each dimension so that it gives a clearer picture? Why or why not?

$3\mathrm{.}2$ Based on the firm level ratios table, calculate the correlation coefficient of the two variables of the same type for variables ae$.$ For example: gross profit margin and net profit margin as measures of profitability. Combined with $3\mathrm{.}1,$ in which circumstances do you think this coefficient information could be useful? $(10$ pts$)$

$3\mathrm{.}3$ Based on the merged table, choose and design appropriate data summary and visualizations to help evaluate the company using the industry ratios as benchmark. Please apply the principles for high$-$quality visualizations: simplicity, emphasis, ethical presentation. $(21$ pts$)$

Please evaluate from at least three different aspects $($ratios$).$ Please don't overclaim on things that your data does not actually support.

Hint: We are having time$-$series data here and a typical type of visualization to show time trend $($and the comparison$)$ is line chart. But you don't have to be limited to it in your data analysis and evaluation. You can supplement your analysis by using other techniques learned in Chapter $5-7,$ such as central tendency $($mean$,$ median$),$ when necessary.

Submit to BrightSpace:

Your Excel file containing imported data, merged data, data transforming$/$analyzing$/$visualizations$,$ and a separate sheet for Answer with Words.

Please name submitted Excel file this way:

FirmName$\_$YourName.

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