Week 5 Homework Due in Week 6 - Chloe

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Southern New Hampshire University *

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Business

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Jan 9, 2024

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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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