a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
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An entrepreneur who owns and operates two businesses (A and B) would like to analyze
their profitability. They would like your help in the analysis. They give you the annual net
profit (in thousands of $) for each business from 2008-2020.
Table 1: Annual Net Profits for Businesses A and B
Business
Year
Profit
Business
Year
Profit
2008
-50
2008
-10
2009
57
2009
30
2010
71
2010
27
2011
64
2011
22
2012
60
2012
21
2013
50
2013
20
A
2014
41
2014
24
2015
59
2015
24
2016
71
2016
32
2017
71
2017
36
2018
74
2018
37
019
81
20
40
2020
97
2020
49
a. Suppose you want to graph the distribution of profits. Explain why using only one stem-
plot might not be optimal for the analysis.
b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What
can you say about the distribution from this stemplot?
c. When are stemplots useful? And why is that?
d. Suppose that instead of having 26 observations you have 200 observations. What graph
should you generate?
e. What other type of graph would be useful to analyze both business' profits? Gener-
ate one for each business. What can we tell the entrepreneur from these graphs?
f. Profits in 2008 are understandably low due to the financial crisis. Check if profits in
2008 are statistical outliers for each business.
Transcribed Image Text:An entrepreneur who owns and operates two businesses (A and B) would like to analyze their profitability. They would like your help in the analysis. They give you the annual net profit (in thousands of $) for each business from 2008-2020. Table 1: Annual Net Profits for Businesses A and B Business Year Profit Business Year Profit 2008 -50 2008 -10 2009 57 2009 30 2010 71 2010 27 2011 64 2011 22 2012 60 2012 21 2013 50 2013 20 A 2014 41 2014 24 2015 59 2015 24 2016 71 2016 32 2017 71 2017 36 2018 74 2018 37 019 81 20 40 2020 97 2020 49 a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that? d. Suppose that instead of having 26 observations you have 200 observations. What graph should you generate? e. What other type of graph would be useful to analyze both business' profits? Gener- ate one for each business. What can we tell the entrepreneur from these graphs? f. Profits in 2008 are understandably low due to the financial crisis. Check if profits in 2008 are statistical outliers for each business.
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