Question
Top five telecommunication companies listed in the Australian Stock Exchange in terms of market capital are Telstra Corporation Limited (TLS), Spark New Zealand Limited (SPK),
Top five telecommunication companies listed in the Australian Stock Exchange in terms of market capital are Telstra Corporation Limited (TLS), Spark New Zealand Limited (SPK), TPG Telecom Limited (TPM), Chorus Limited (CNU) and Vocus Group Limited (VOC). The accompanying table provides the average price-earnings ratio (P/E) for these companies for different years. From the data answer the questions below for these companies. (Work only with the data provided. Missing values indicate data not available for those companies during those years.)
(a) Compute the mean, median, first quartile, and third quartile of average price-earnings ratio for each company using the exact position, (n+1)f, where n is the number of observations and f the relevant fraction for the quartile.
(b) Compute the standard deviation, mean absolute deviation and range for each company.
(c) Draw a box and whisker plot for the average price-earnings ratio of each company and put them side by side on one graph with the same scale so that the P/Es can be compared. (This graph must be done in EXCEL or similar software and cannot be hand-drawn.)
(d) Write a paragraph on price-earnings ratio values related to it being indicative of a share being a good investment or a poor investment.
Averageprice-earnings ratio VOC 39.6 27.1 Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 TLS 15.3 11.5 10.4 SPK 11.9 10.3 11.8 10.6 16.5 TPM CNU 8.6 21.5 15.8 13.6 14.8 10.3 14.1 13.4 17.1 16 14.6 10.6 13.3 16.2 20.8 24.8 23.7 34.3 13.6 13.3 15.5 15.3 15.7 27.2 27.8 15.2 8.3 17.3 18
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