Question
The market capitalization of a publicly traded company is calculated by multiplying the number of existing shares of stock for the company by the price
The market capitalization of a publicly traded company is calculated by multiplying the number of existing shares of stock for the company by the price per share. The table below displays the market capitalizations and the 2020 fiscal year revenues (both in $ billion) for the 30 companies that are included in a particular stock index. Use the data in this table to answer the following questions.
- Stock Index Data
(a)Calculate the mean and standard deviation (in $ billion) for the market capitalizations for the 30 companies included in the stock index. (Round your answers to two decimal places.)mean $ billion standard deviation $ billionCalculate the mean and standard deviation (in $ billion) for the 2020 fiscal year revenues for the 30 companies included in the DJI. (Round your answers to two decimal places.)mean $ billion standard deviation $ billion(b)Calculate the coefficient of variation for the market capitalization and for the 2020 fiscal year revenue. Which variable has the higher coefficient of variation?Calculate the coefficient of variation (in percent) for the market capitalization. (Round your answer to the nearest integer.) %Calculate the coefficient of variation (in percent) for the 2020 fiscal year revenue. (Round your answer to the nearest integer.) %Which variable has the higher coefficient of variation?market capitalization2020 fiscal year revenue (c)Construct a boxplot for the market capitalization values. Are there any outliers for the market capitalization values?There is/are value(s) below the lower limit and value(s) above the upper limit.(d)Construct a boxplot for the 2020 fiscal year revenue values. Are there any outliers for the 2020 fiscal year revenue values?There is/are value(s) below the lower limit and value(s) above the upper limit.If so, are the companies that are outliers for 2020 fiscal year revenue values the same as the companies that are outliers for the market capitalization values?No. Only two companies are outliers for both market capitalization and 2020 fiscal year revenue.No. Only one company is an outlier for both market capitalization and 2020 fiscal year revenue. No. There are no companies that are outliers for both market capitalization and 2020 fiscal year revenue.Yes. The companies that are outliers for 2020 fiscal year revenue are the same as the companies that are outliers market capitalization.There are no outliers for 2020 fiscal year revenue.(e)Calculate the sample correlation coefficient for market capitalization and 2020 fiscal year revenues. (Round your answer to three decimal places.)What does this sample correlation coefficient value indicate about market capitalization and 2020 fiscal year revenues?For ---Select--- all publicly traded companies this sample of data , market capitalization and 2020 fiscal year revenue have ---Select--- a negative a positive no linear correlation.
Company | Market Capitalization ($ billion) | 2020 Fiscal Year Revenue ($ billion) |
---|---|---|
Company 1 | 103 | 31.2 |
Company 2 | 131 | 37.1 |
Company 3 | 125 | 24.4 |
Company 4 | 2,951 | 273.5 |
Company 5 | 120 | 59.2 |
Company 6 | 110 | 42.7 |
Company 7 | 229 | 95.5 |
Company 8 | 268 | 48.3 |
Company 9 | 254 | 34 |
Company 10 | 42 | 37.5 |
Company 11 | 129 | 45.6 |
Company 12 | 422 | 109.2 |
Company 13 | 143 | 31.6 |
Company 14 | 117 | 72.6 |
Company 15 | 209 | 76.9 |
Company 16 | 444 | 83.6 |
Company 17 | 467 | 118.5 |
Company 18 | 201 | 18.2 |
Company 19 | 193 | 49 |
Company 20 | 2,559 | 144 |
Company 21 | 265 | 38.4 |
Company 22 | 393 | 72 |
Company 23 | 253 | 16.1 |
Company 24 | 39 | 33 |
Company 25 | 468 | 254.6 |
Company 26 | 219 | 129.3 |
Company 27 | 457 | 20.8 |
Company 28 | 43 | 138.5 |
Company 29 | 390 | 523 |
Company 30 | 276 | 64.4 |
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