MGMT 305 Spring 15 SOLUTIONS TO HOMEWORK 1 1 
SOLUTIONS TO HOMEWORK 1
1.2. a. The ten elements are the ten cars
b. 5 variables: Size, Cylinders, City MPG, Highway MPG, and Fuel
c. Categorical variables: Size and Fuel
Quantitative variables: Cylinders, City MPG, and Highway MPG
1.3. a. Average mpg for city driving = 182/10 = 18.2 mpg
b. Average mpg for highway driving = 261/10 = 26.1 mpg
On average, the miles per gallon for highway driving is 26.1 – 18.2 = 7.9 mpg greater compared to city driving.
2.47.
a.
(Other possible stem-and-leafs are possible. In fact, Minitab generates one that is slightly different.) b. The majority of the start-up companies in this set have less than $90 million in venture capital. Only 6 of the 50 (12%) have more than $150 million.
2.49.
a. Stem and leaf diagram here.
b.
12
Frequency
10
8
6
4
2
0
0.0-0.9 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 5.0-5.9 6.0-6.9 7.0-7.9 8.0-8.9 9.0-9.9
Dividend Yields
c. The distribution is skewed to the right.
d. Dividend yield ranges from 0% to over 9%. The most frequent range is 3.0% to 3.9%.
Average dividend yields looks to be between 3% and 4%. Over 50% of the companies (16) pay from 2.0 % to 3.9%. Five companies (AT&T, DuPont, General Electric, Merck, and
Verizon) pay 5.0% or more. Four companies (Bank of America, Cisco Systems, HewlettPackard, and J.P. Morgan Chase) pay less than 1%.
e. General Electric had an unusually high dividend yield of 9.2%. 500 shares at $14 per share is an investment of 500($14) = $7,000. A 9.2% dividend yield provides .092(7,000) = $644 of dividend income per year.
3.65.
Σx n i x =
a.=
100
= $10, 000
10
Mean debt upon graduation is $10,000.
b. s2 =
= s Σ( xi − x ) 2 221.78
= = 24.64 n −1
9
=
24.64 4.96
3.66.
=
b. s
Σxi 13, 400
=
= 670
20
n
= x a.
Σ( xi − x ) 2
=
n −1
x−x s z =
c.=
3,949, 200
= $456
20 − 1
2040 − 670
= 3.00
456
Yes it is an outlier.
d. First of all, the employee payroll service will be up to date on tax regulations. This will save the small business owner the time and
1.2. a. The ten elements are the ten cars
b. 5 variables: Size, Cylinders, City MPG, Highway MPG, and Fuel
c. Categorical variables: Size and Fuel
Quantitative variables: Cylinders, City MPG, and Highway MPG
1.3. a. Average mpg for city driving = 182/10 = 18.2 mpg
b. Average mpg for highway driving = 261/10 = 26.1 mpg
On average, the miles per gallon for highway driving is 26.1 – 18.2 = 7.9 mpg greater compared to city driving.
2.47.
a.
(Other possible stem-and-leafs are possible. In fact, Minitab generates one that is slightly different.) b. The majority of the start-up companies in this set have less than $90 million in venture capital. Only 6 of the 50 (12%) have more than $150 million.
2.49.
a. Stem and leaf diagram here.
b.
12
Frequency
10
8
6
4
2
0
0.0-0.9 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 5.0-5.9 6.0-6.9 7.0-7.9 8.0-8.9 9.0-9.9
Dividend Yields
c. The distribution is skewed to the right.
d. Dividend yield ranges from 0% to over 9%. The most frequent range is 3.0% to 3.9%.
Average dividend yields looks to be between 3% and 4%. Over 50% of the companies (16) pay from 2.0 % to 3.9%. Five companies (AT&T, DuPont, General Electric, Merck, and
Verizon) pay 5.0% or more. Four companies (Bank of America, Cisco Systems, HewlettPackard, and J.P. Morgan Chase) pay less than 1%.
e. General Electric had an unusually high dividend yield of 9.2%. 500 shares at $14 per share is an investment of 500($14) = $7,000. A 9.2% dividend yield provides .092(7,000) = $644 of dividend income per year.
3.65.
Σx n i x =
a.=
100
= $10, 000
10
Mean debt upon graduation is $10,000.
b. s2 =
= s Σ( xi − x ) 2 221.78
= = 24.64 n −1
9
=
24.64 4.96
3.66.
=
b. s
Σxi 13, 400
=
= 670
20
n
= x a.
Σ( xi − x ) 2
=
n −1
x−x s z =
c.=
3,949, 200
= $456
20 − 1
2040 − 670
= 3.00
456
Yes it is an outlier.
d. First of all, the employee payroll service will be up to date on tax regulations. This will save the small business owner the time and