Shadow Stocks are common stocks of smaller companies that are not closely followed by Wall Street analysts. Individual investors often prefer this type of small cap investment. These stocks are readily available for purchase, easy to buy and sell, and the cost of each share of stock is usually well below large cap investments.

Mrs. Marge Simpson has $100,000 to invest and her stockbroker has recommended 25 Shadow Stocks. She heard you are a business student at UIW and needs YOU to answer some questions about the information she has been given. In addition, she also needs you to write an e-mail (3-paragraphs) with your recommendation as to how she should invest his money.

The table below shows a data set containing information for 25 of the Shadow Stocks.

1) List the variables in the table. Then identify the scale of measurement for each variable and provide a brief explanation as to why.

2) The stockbroker said that the table represented a sample of Shadow Stock information and that she should use the information to help make decisions about all Shadow Stock purchases. The stockbroker called it a statistical inference. Briefly explain to Mrs. Simpson what the stockbroker meant.

3) For the Exchange variable, show the frequency, relative frequency, and the percent frequency distribution table. In addition, provide a quick drawing (as best as you can) of one graph used for this type of information.

Please Show Your Work.

4) Show the frequency distribution, relative frequency, percent relative frequency and cumulative percent relative frequency for the Gross Profit Margin. Using these five intervals: 014.9, 1529.9, 3044.9, 4559.9, and 6074.9. In addition, provide a quick drawing (as best as you can) of one graph used for this type of information.

Please Show Your Work.

5) What is the average price/earnings ratio?

Please Show Your Work.

TO: Mrs. Marge Simpson

Subject:

Dear Mrs. Simpson,

Please Type Your Answer Here.

Type our name as your signature ..

Company DeWolfe Companies North Coast Energy Hansen Natural Corp Marine Max, Inc. Nanometrics Incorporated TeamStaff, Inc. Environmental Tectonics Measurement Specialties SEMCO Energy, Inc. Party City Corporation Embrex, Inc. Tech/Ops Sevcon, Inc. ARCADIS NV Qiao Xing Universal Tele. Energy West Incorporated Barnwell Industries, Inc. Innodata Corporation Medical Action Industries Instrumentarium Corp. Petroleum Development Drexler Technology Corp. Gerber Childrenswear Inc. Gaiam, Inc. Artesian Resources Corp. York Water Company Ticker Exchange Symbol AMEX DWL OTC NCEB OTC HANS NYSE HZO OTC NANO OTC TSTF AMEX ETC AMEX MSS NYSE SEN OTC PCTY OTC EMBX AMEX TO OTC ARCAF OTC XING OTC EWST AMEX BRN OTC INOD OTC MDCI OTC INMRY OTC PETD OTC DRXR NYSE GCW OTC GAIA OTC ARTNA OTC YORW Market Cap (5 millions) 36.4 52.5 41.1 111.5 228.6 92.1 51.1 101.8 193.4 97.2 136.5 23.2 173.4 64.3 29.1 27.3 66.1 137.1 240.9 95.9 233.6 126.9 295.5 62.8 92.2 Price/ Earnings Ratio 8.4 6.2 14.6 7.2 38.0 33.5 35.8 26.8 18.7 15.9 18.9 20.7 8.8 22.1 9.7 7.4 11.0 26.9 3.6 6.1 45.6 7.9 68.2 20.5 22.9 Gross Profit Margin (%) 36.7 59.3 44.8 23.8 53.3 4.1 35.9 37.6 23.6 36.4 59.5 35.7 9.6 30.8 16.3 73.4 29.6 30.6 52.1 19.4 53.6 25.8 60.7 45.5 74.2 Company DeWolfe Companies North Coast Energy Hansen Natural Corp Marine Max, Inc. Nanometrics Incorporated TeamStaff, Inc. Environmental Tectonics Measurement Specialties SEMCO Energy, Inc. Party City Corporation Embrex, Inc. Tech/Ops Sevcon, Inc. ARCADIS NV Qiao Xing Universal Tele. Energy West Incorporated Barnwell Industries, Inc. Innodata Corporation Medical Action Industries Instrumentarium Corp. Petroleum Development Drexler Technology Corp. Gerber Childrenswear Inc. Gaiam, Inc. Artesian Resources Corp. York Water Company Ticker Exchange Symbol AMEX DWL OTC NCEB OTC HANS NYSE HZO OTC NANO OTC TSTF AMEX ETC AMEX MSS NYSE SEN OTC PCTY OTC EMBX AMEX TO OTC ARCAF OTC XING OTC EWST AMEX BRN OTC INOD OTC MDCI OTC INMRY OTC PETD OTC DRXR NYSE GCW OTC GAIA OTC ARTNA OTC YORW Market Cap (5 millions) 36.4 52.5 41.1 111.5 228.6 92.1 51.1 101.8 193.4 97.2 136.5 23.2 173.4 64.3 29.1 27.3 66.1 137.1 240.9 95.9 233.6 126.9 295.5 62.8 92.2 Price/ Earnings Ratio 8.4 6.2 14.6 7.2 38.0 33.5 35.8 26.8 18.7 15.9 18.9 20.7 8.8 22.1 9.7 7.4 11.0 26.9 3.6 6.1 45.6 7.9 68.2 20.5 22.9 Gross Profit Margin (%) 36.7 59.3 44.8 23.8 53.3 4.1 35.9 37.6 23.6 36.4 59.5 35.7 9.6 30.8 16.3 73.4 29.6 30.6 52.1 19.4 53.6 25.8 60.7 45.5 74.2