The accompanying table shows a portion of the 30 companies that comprise the Dow Jones Industrial Average (DJIA). The second column shows the year that the company joined the DJIA (Year). The third column shows each companys Morningstar rating (Rating). (Five stars is the best rating that a company can receive, indicating that the companys stock price is undervalued and thus a very good buy. One star is the worst rating a company can be given, implying that the stock price is overvalued and a bad buy.) Finally, the fourth column shows each companys stock price as of March 17, 2017 (Price in $).
a. what are the measurement scale of the Year data? What are the strengths of this type of data? What are the weaknesses?
b. What is the measurement scale of Morningstar's star-based rating system? Summarize Morningstar's star-based rating system of the companies in tabular form. Let 5 denote *****, 4 denote ****, and so on. What information can be extracted from these data?
c. What is the measurement scale of the Stock Prize data? What are its strengths?
D 1 Tween Question 1 Question 2 Question 3 Question 4 1 JAMN94.5 4 5:00pm 20 2 MIX104.1 2 5:00pm 3 KISS108 24:30pm 4 JAMN94.5 3 4:00pm 5 KISS108 1 3:30pm 6 JAMN94.5 1 6:00pm 7 KISS108 2 6:00pm 8 KISS108 3 5:00pm 9 KISS108 2 4:30pm 10 KISS108 3 4:30pm 11 JAMN94.5 3 3:00pm 12 JAMN94.5 4 4:00pm 13 KISS108 2 4:30pm 14 KISS108 2 5:00pm 15 KISS108 3.4:00pm 16 JAMN94.5 3 6:00pm 17 KISS108 2 5:00pm 18 MIX104.1 4 6:00pm 19 KISS108 1 5:00pm 20 KIS5108 2 4:30pm Tween_Survey Homeownership DOW_Characteristics + H 1 Year 2001 2002 2003 2004 2005 2006 8 2007 9 2008 10 2009 2010 2011 13 2012 14 2013 2014 16 2015 17 Year 2001 2002 2003 2004 2005 2006 24 2007 25 2008 Rate 67.8 67.9 68.3 69.0 68.9 68.8 68.1 67.8 67.4 66.9 66.1 65.4 65.1 64.5 63.7 Rate 67.8 67.9 68.3 69.0 68.9 68.8 68.1 67.8 2009 2010 2011 29 2012 2013 2014 32 2015 67.4 66.9 66.1 65.4 65.1 64.5 63.7 Tween_Survey Homeownership DOW_Characteristics + Year 1 Company 23M (MMM) American Express (AXP) Apple (AAPL) 5 Boeing (BA) 6 Caterpillar (CAT) 7 Chevron Corp. (CVX) 8 Cisco Systems (CSCO) 9 Coca-Cola (KO) 10 Disney (DIS) 11 DuPont (DD) 12 ExxonMobil (XOM) 13 General Electric (GE) 14 Goldman Sachs (GS) 15 Home Depot (HD) 16 Intel (INTC) 17 IBM (IBM) 18 Johnson & Johnson (NJ) 19 JPMorgan Chase (JPM) 20 McDonald's (MCD) 21 Merck (MRK) 22 Microsoft (MSFT) 23 Nike (NKE) 24 Pfizer (PFE) 25 Proctor & Gamble (PG) Rating 1976 - 1982 *** 2015 *** 1987 *** 1991 - 2008 - 2009 * 1987 ** 1991 **** 1935 ** 1928 *** 1907 *** 2013 ** 1999 ** 1999 ** 1979 *** 1997 - 1991 ** 1985 *** 1979 *** 1999 - 2013 - 2004 - 1932 Price 192.36 79.25 139.99 180.10 92.91 107,68 34.23 42.03 111.76 81.25 82.00 29.28 243.94 149.60 35.27 175.65 128.06 90.68 128.64 63.90 64.87 57.80 34.32 91.00 26 Travelers (TRV) 27 United Technologies (UTX) 28 United Health (UNH) 29 Verizon Comm. (VZ) 30 Visa (V) 31 Wal-Mart (WMT) 32 Tween Survey 2009 *** 1939 *** 2012 ** 2004 *** 2013 **** 1991 123.14 113.45 169.70 50.39 90.24 69.89 Homeownership DOW_Characteristics + D 1 Tween Question 1 Question 2 Question 3 Question 4 1 JAMN94.5 4 5:00pm 20 2 MIX104.1 2 5:00pm 3 KISS108 24:30pm 4 JAMN94.5 3 4:00pm 5 KISS108 1 3:30pm 6 JAMN94.5 1 6:00pm 7 KISS108 2 6:00pm 8 KISS108 3 5:00pm 9 KISS108 2 4:30pm 10 KISS108 3 4:30pm 11 JAMN94.5 3 3:00pm 12 JAMN94.5 4 4:00pm 13 KISS108 2 4:30pm 14 KISS108 2 5:00pm 15 KISS108 3.4:00pm 16 JAMN94.5 3 6:00pm 17 KISS108 2 5:00pm 18 MIX104.1 4 6:00pm 19 KISS108 1 5:00pm 20 KIS5108 2 4:30pm Tween_Survey Homeownership DOW_Characteristics + H 1 Year 2001 2002 2003 2004 2005 2006 8 2007 9 2008 10 2009 2010 2011 13 2012 14 2013 2014 16 2015 17 Year 2001 2002 2003 2004 2005 2006 24 2007 25 2008 Rate 67.8 67.9 68.3 69.0 68.9 68.8 68.1 67.8 67.4 66.9 66.1 65.4 65.1 64.5 63.7 Rate 67.8 67.9 68.3 69.0 68.9 68.8 68.1 67.8 2009 2010 2011 29 2012 2013 2014 32 2015 67.4 66.9 66.1 65.4 65.1 64.5 63.7 Tween_Survey Homeownership DOW_Characteristics + Year 1 Company 23M (MMM) American Express (AXP) Apple (AAPL) 5 Boeing (BA) 6 Caterpillar (CAT) 7 Chevron Corp. (CVX) 8 Cisco Systems (CSCO) 9 Coca-Cola (KO) 10 Disney (DIS) 11 DuPont (DD) 12 ExxonMobil (XOM) 13 General Electric (GE) 14 Goldman Sachs (GS) 15 Home Depot (HD) 16 Intel (INTC) 17 IBM (IBM) 18 Johnson & Johnson (NJ) 19 JPMorgan Chase (JPM) 20 McDonald's (MCD) 21 Merck (MRK) 22 Microsoft (MSFT) 23 Nike (NKE) 24 Pfizer (PFE) 25 Proctor & Gamble (PG) Rating 1976 - 1982 *** 2015 *** 1987 *** 1991 - 2008 - 2009 * 1987 ** 1991 **** 1935 ** 1928 *** 1907 *** 2013 ** 1999 ** 1999 ** 1979 *** 1997 - 1991 ** 1985 *** 1979 *** 1999 - 2013 - 2004 - 1932 Price 192.36 79.25 139.99 180.10 92.91 107,68 34.23 42.03 111.76 81.25 82.00 29.28 243.94 149.60 35.27 175.65 128.06 90.68 128.64 63.90 64.87 57.80 34.32 91.00 26 Travelers (TRV) 27 United Technologies (UTX) 28 United Health (UNH) 29 Verizon Comm. (VZ) 30 Visa (V) 31 Wal-Mart (WMT) 32 Tween Survey 2009 *** 1939 *** 2012 ** 2004 *** 2013 **** 1991 123.14 113.45 169.70 50.39 90.24 69.89 Homeownership DOW_Characteristics +
