Question
One common method for measuring the size of a company is to use its marketcapitalization, which is computed by multiplying the number of stock shares
One common method for measuring the size of a company is to use its marketcapitalization, which is computed by multiplying the number of stock shares by the price of a share of stock. The data set below contains the market capitalizationvalues, indollars, for 30
30 companies. Complete parts(a) through(c).
41.8
41.8
66.5
66.5
44.4
44.4
17.9
17.9
132.8
132.8
143.9
143.9
29.9
29.9
93.3
93.3
78.5
78.5
71.0
71.0
268.4
268.4
57.7
57.7
319.9
319.9
38.5
38.5
29.3
29.3
114.0
114.0
23.0
23.0
21.5
21.5
174.5
174.5
50.3
50.3
181.8
181.8
127.9
127.9
205.4
205.4
260.5
260.5
65.2
65.2
83.7
83.7
195.2
195.2
289.6
289.6
122.1
122.1
16.0
16.0
a. Decide whether the market capitalization of these companies appears to be approximately normally distributed by comparing data characteristics to theoretical properties.
Based on the theoretical properties of the normaldistribution, do the data appear to be approximately normallydistributed?
No, the distribution of the data is significantly skewed to the right.
No, because there are a significant number of outliers in the data.
No, the distribution of the data is significantly skewed to the left.
Yes, the distribution of the data appears to closely resemble a normal distribution.
b. Decide whether the market capitalization of these companies appears to be approximately normally distributed by constructing a normal probability plot.
Use technology to construct the normal probability plot. Choose the correct graph below.
A.
-4
0
4
0
175
350
Z-value
MarketCap.($)
A scatterplot has a horizontal axis labeled Z-value from negative 4 to 4 in increments of 1 and a vertical axis labeled "Market Capitalization in dollars" from 0 to 350 in increments of 25. The points roughly follow a straight line that starts at (negative 1.8, 20) and rises from left to right to (1.8, 320). All coordinates are approximate.
B.
-4
0
4
0
175
350
Z-value
MarketCap.($)
A scatterplot has a horizontal axis labeled Z-value from negative 4 to 4 in increments of 1 and a vertical axis labeled "Market Capitalization in dollars" from 0 to 350 in increments of 25. The points roughly follow a curve that starts at (negative 1.8, 20) and rises from left to right at a decreasing rate to (1.8, 320). All coordinates are approximate.
C.
-4
0
4
0
175
350
Z-value
MarketCap.($)
A scatterplot has a horizontal axis labeled Z-value from negative 4 to 4 in increments of 1 and a vertical axis labeled "Market Capitalization in dollars" from 0 to 350 in increments of 25. The points roughly follow a curve that starts at (negative 1.8, 15) and rises from left to right at an increasing rate to (1.8, 320). All coordinates are approximate.
What is the best description of the given data based on the normal probabilityplot?
A.
The data appear to be normally distributed.
B.
The data are skewed to the right.
C.
The data are skewed to the left.
c. Decide whether the market capitalization of these companies appears to be approximately normally distributed by constructing a histogram.
Use technology to construct the histogram. Choose the correct histogram below.
A.
0
150
300
0
9
18
MarketCap.($)
Frequency
A histogram has a horizontal axis labeled "Market Capitalization in dollars" from 0 to 375 plus in increments of 75 and a vertical axis labeled Frequency from 0 to 18 in increments of 1. The heights of the bars are as follows, with the class bounds given first and the height given second: 0 to 75, 2; 75 to 150, 4; 150 to 225, 6; 225 to 300, 10; 300 to 375, 8.
B.
0
150
300
0
9
18
MarketCap.($)
Frequency
A histogram has a horizontal axis labeled "Market Capitalization in dollars" from 0 to 375 plus in increments of 75 and a vertical axis labeled Frequency from 0 to 18 in increments of 1. The heights of the bars are as follows, with the class bounds given first and the height given second: 0 to 75, 4; 75 to 150, 8; 150 to 225, 11; 225 to 300, 6; 300 to 375, 1.
C.
0
150
300
0
9
18
MarketCap.($)
Frequency
A histogram has a horizontal axis labeled "Market Capitalization in dollars" from 0 to 375 plus in increments of 75 and a vertical axis labeled Frequency from 0 to 18 in increments of 1. The heights of the bars are as follows, with the class bounds given first and the height given second: 0 to 75, 14; 75 to 150, 8; 150 to 225, 4; 225 to 300, 3; 300 to 375, 1.
What is the best description of the given data based on thehistogram?
A.
The data are skewed to the right.
B.
The data appear to be normally distributed.
C.
The data are skewed to the left.
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
11th Edition
9780132997621, 132149117, 132997622, 978-0132149112
