[6]
STATISTICS FOR BUSINESS
LIST OF READING MATERIALS
Title
1. Job Applications
2. Managing Risk
3. Cutcraft Cutlery Corporation
4. Compensation for Faculty Members
5. Airline Satisfaction Survey
6. The Avocado
7. The Mountain States Potato Company
8. Edgartown Fisheries
9. Monitor Systems
[7]
JOB APPLICATIONS
A business graduate very much wants to get a job in any one of the top 10 accounting firms.
Applying to any of these companies requires a lot of effort and paperwork and is therefore costly.
She estimates the cost of applying to each of the 10 companies and the probability of getting a job offer there. These data are tabulated below. The tabulation is in the decreasing order of cost.
1. If the graduate applies to
…show more content…
The risk-averse investor would likely prefer investment C, and the risk-seeking individual would opt for investment A.
[9]
A group of local investor decided to use this strategy in comparing the price earnings (P/E) ratios for two different groups of investments: The Banking Industry and the Health Care
Industry. Data were collected from the Corporate Scoreboard contained in the March 2,
1994, edition of Business Week. The Scoreboard contained P/E ratios for 55 U.S. banks and
49 companies under the Health Care category (including subcategories of drug distribution, drugs and research, health care services, ad medical products). To reduce the effect of any outliers, it was decided to eliminate the smallest and the largest ratio from each of the two groups. The resulting relative frequency distributions can be considered probability distributions describing the P/E ratios for each of the two industry types.
Banking Industry
P/E Ratio: 7 8 9 10 11 12 13 14 16 18
Frequency: 2 2 12 16 8 5 3 2 1 2
HEALTH CARE INDUSTRY
P/E Ratio: 10 11 12 13 14 15 16 17 18 19 20 21
Frequency: 1 1 1 5 3 3 4 4 1 2 3 2
P/E Ratio: 22 23 24 25 27 29 30 31 34 37 43
Frequency: 1 2 2 1 2 2 2 1 2 1 1
Source: Corporate Scoreboard, Business Week, March 7, 1994, pp.111-118.
QUESTIONS
1. Construct a probability distribution for each of the industry
Price earnings ratio is a valuation ratio of a company's current share price compared to its per-share earnings. Coca-Cola has a lower P/E ratio than Pepsi Co. The industry average for P/E ratio is 21.1. This means neither of the companies beat the industry average ratio. Between the
* The price earnings ratio has dropped by 5.510%, meaning that investors in 2009 were willing to pay slightly less per dollar of earnings than in 2008.
Investors often come to believe that a stock is undervalued or overvalued compared to other stocks in its industrial group. To calculate an alternate target price for the current and next fiscal year based on those beliefs, investors can apply the average PE multiple for a company 's industrial group to the average professional analyst 's earnings estimate for the company in those periods. Valuation using the industry 's
The number 65 is the greatest outlier of the given values. The inbalanced influence of the integer can be highlighted by witholding 65 from the values and solving for the mean 13+3+35+19+12+15+5+42+11 = 155/9 = 17.22...
With the huge diversity and changeability of human biology, it is impossible to imagine a reality without some mutations, changes, or issues in the organs and tissues of humans. Thus, it rightly follows that medications and pharmaceuticals have been created in an effort to counteract the various ailments and illnesses that people can experience. However, as time has gone on and these pharmaceuticals have become more and more high-tech, regulated, and trusted, they have also become incredibly commercialized. Worse still, medications have become incredibly expensive and can be unattainable for some people.
There are many drugs in the world that can better a person’s health. There are also drugs
Drugs are used in these cases but the results are not always fortunate. Though the vast majority of drugs are used to treat medical conditions, there are also the few
Official statistics are free source of quantities date, is quick to access and is available on a range of topics. Official statistics also shows up-to-date trends and trends over time, this allows
After attaining a degree in business studies, my career options will grow. Within the next five years, I can see two attractive options available:
Analyst , on average , viewed the company not as much appealing at the lower price. On the other hand, back in the end of August 2000, analyst were
3. An analysis of stock market conditions including recent returns on stock market indexes and average valuation ratios such as P/E ratios of stock market indexes.
Theoretically, with the results of the P / E multiples, the company's value or performance can be determined by multiplying the company's profit with this ratio upon the target company. Phelps’s P/E multiples have increased from the previous quarter in which attract companies’ attention for acquisition. Higher P/E means PD use stock as consideration more frequently. In addition to positive EV/Sales, it shows that Phelps has more debt rather than cash. However, the growth of Phelps’ P/E targets a good prospect in future earnings. For ROE, as higher the return is better so, with this ROE, FCX can use it to compare the other companies.
Over the years, scientists have been instrumental in discovering and developing new drugs that save thousands of people’s lives. This significantly improves life as we know it on Earth. So basically, this topic is on a big in-depth study of drugs and medications.
It istaking the company’s stock price and comparing it to its earnings, cash flow, or book value (Nishi &Doering, 2000).
In March 1995, Fred Aldrich, a summer trainee with the First Investments, Inc., was called into the office of the head of investment analysis section of the trust department. The following conversation took place: Fred, here are the 1994, 1993, and 1985 Basic Industries Company’s financials (Exhibit 1) and a 10-year summary (Exhibit 2 ). Our trust department has owned this stock since the early 1980s. As you know, our portfolio people place a lot of emphasis on the quality of a company’s earnings and the return on owners’ equity in making stock selections. Well, they are worried. The 1994 Basic Industries annual report