Disgruntled shareholders who put pressure on corporate management to make certain financial decisions are referred to as shareholder activists. In Exercise 1.22 we described a survey of 240 large investors designed to determine how widespread shareholder activism actually is. One of several questions asked was: If the chief executive officer and the board of directors differed on company strategy, what action would you, as a large Response Number of Investors .....................................................................................................................

Seek formal explanation 154 Seek CEO performance review 49 Dismiss CEO 20 Seek no action 17 Total 240 investor of the firm, take? (New York Times, Oct. 31, 1995) The responses are summarized in the table.

a. Construct a relative frequency table for the data.

b. Display the relative frequencies in a graph.

c. Discuss the findings.