Week 5 Homework Due in Week 6 - Chloe
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Southern New Hampshire University *
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Jan 9, 2024
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docx
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Uploaded by chloeeelizabeth15
Chloe Rich
QSO 260 / QSO 560 Descriptive Business Analytics
Descriptive Statistics & Data Visualization
Week 5 Homework Assignment
Instructions
1.
This assignment is to be done individually. It is not a group assignment.
2.
Word-process your answers within this document. Copy and paste your Excel work as required into this document. 3.
The homework assignment is due before the beginning of the next class. Please submit through the Week 5 Assignment Submission Folder. 4.
You can submit up to one late/redo homework assignment before the spring break through the Late/Redo Assignment Submission Folder.
Camm2 Problem 2-25
The worksheet Fortune 500 includes data for profits and market capitalizations from a sample of
firms in the Fortune 500.
(a)
Develop a scatter chart with Profits on the x-axis and Market Capitalization on the y-axis. Insert a trend line to the data. Copy and paste the scatter chart in the space below.
- 2000.00
0.00
2000.00
4000.00
6000.00
8000.00
10000.00 12000.00 14000.00
0.00
20000.00
40000.00
60000.00
80000.00
100000.00
120000.00
140000.00
160000.00
180000.00
200000.00
Market Capitalization ($ millions)
Profits ($ millions)
Market Capitlization ($ millions)
(b) What does the scatter chart indicate about the relationship between profits and market capitalization? Giver reasons for your answer.
Because the data shows an upward slope, there is a positive relationship between profits and market capitalization ($ millions).
(c)
Calculate the covariance and correlation coefficient between profits and market capitalization. Copy and paste your spreadsheet with calculations in the space below.
Company
Profits
($
million
s)
Market
Capitalizati
on ($
millions)
Alliant Techsystems
313.20
1891.90
Amazon.com
631.00
81458.60
Correlatio
n
0.8228696
74
AmerisourceBergen
706.60
10087.60
Covarianc
e
131804978
.6
Avis Budget Group
-29.00
1175.80
Boeing
4018.00
55188.80
Cardinal Health
959.00
14115.20
Cisco Systems
6490.00
97376.20
Coca-Cola
8572.00
157130.50
ConocoPhillips
12436.0
0
95251.90
Costco Wholesale
1462.00
36461.20
CVS Caremark
3461.00
53575.70
Delta Air Lines
854.00
7082.10
Fidelity National Financial
369.50
3461.40
FMC Technologies
399.80
12520.30
Foot Locker
278.00
3547.60
General Motors
9190.00
32382.40
Harley-Davidson
599.10
8925.30
HCA Holdings
2465.00
9550.20
Kraft Foods
3527.00
65917.40
Kroger
602.00
13819.50
Lockheed Martin
2655.00
26651.10
Medco Health Solutions
1455.70
21865.90
Owens Corning
276.00
3417.80
Pitney Bowes
617.50
3681.20
Procter & Gamble
11797.0
0
182109.90
Ralph Lauren
567.60
12522.80
Rockwell Automation
697.80
10514.80
Rockwell Collins
634.00
8560.50
United Stationers
109.00
1381.60
United Technologies
4979.00
66606.50
UnitedHealth Group
5142.00
53469.40
(d) Discuss what the covariance indicates about the relationship between profits and market capitalization? Giver reasons for your answer.
A large covariance means a strong relationship between the two variables, profits and market capitalization. (e)
What does the correlation coefficient indicate about the relationship between profits and market capitalization? Giver reasons for your answer.
A correlation of 1 indicates a perfect positive correlation. Since our correlation is 0.82, there is a very positive correlation between profits and market capitalization. This means the movement of one positively impacts movement for the other.
Camm2 Problem 3-4
In the worksheet Major Salary
, data have been collected from 111 College of Business graduates on their monthly starting salaries. The graduates include students majoring in management, finance, accounting, information systems, and marketing. (a)
Create a Pivot Table in Excel to display the number of graduates, the average monthly starting salary, the lowest starting salary and the highest starting salary for each major. Tips: 1.
Insert Pivot Table 2.
Move Major to Rows. 3.
Move Major, Monthly Salary, Monthly Salary, and Monthly Salary to Values
. 4.
Change value field setting for Major to Count. 5.
Change value field setting for Monthly Salary to Average.
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