BuyFind*arrow_forward*

13th Edition

Anderson

Publisher: CENGAGE L

ISBN: 9781305881884

Chapter 3, Problem 75SE

Textbook Problem

640 views

The Panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific Oceans. The following table (*The Big Ditch,* Mauer and Yu, 2011) provides annual returns for Panama Railroad stock from 1853 through 1880.

Year |
Return on Panama Railroad Company Stock (%) |

1853 | −1 |

1854 | −9 |

1855 | 19 |

1856 | 2 |

1857 | 3 |

1858 | 36 |

1859 | 21 |

1860 | 16 |

1861 | −5 |

1862 | 43 |

1863 | 44 |

1864 | 48 |

1865 | 7 |

1866 | 11 |

1867 | 23 |

1868 | 20 |

1869 | −11 |

1870 | −51 |

1871 | −42 |

1872 | 39 |

1873 | 42 |

1874 | 12 |

1875 | 26 |

1876 | 9 |

1877 | −6 |

1878 | 25 |

1879 | 31 |

1880 | 30 |

- a. Create a graph of the annual returns on the stock. The New York Stock Exchange earned an annual average return of 8.4% from 1853 through 1880. Can you tell from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange?
- b. Calculate the mean annual return on Panama Railroad Company stock from 1853 through 1880. Did the stock outperform the New York Stock Exchange over the same period?

**a.**

To determine

Draw a graph of the annual returns on the stock and explain whether it is possible to tell that from the graph if the Panama Railroad Company stock outperformed the New York Stock Exchange.

**Calculation:**

The given information is that the table summarizes the annual returns for Panama Railroad stock from 1853 through 1880. The New York Stock Exchange earned an annual average return of 8.4% from 1853 through 1880.

**Software Procedure:**

A step-by-step procedure to draw the Time series plot using MINITAB software:

- Choose
**Graph > Time Series Plot**. - Choose
**Multiple**, and then click**OK**...

**b.**

To determine

Find the mean annual return on Panama Railroad Company stock from 1853 through 1880 and check whether the stock outperforms the New York Stock Exchange over the same period.

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Show all chapter solutions

Ch. 3.1 - Consider a sample with data values of 10, 20, 12,...Ch. 3.1 - Consider a sample with data values of 10, 20, 21,...Ch. 3.1 - Consider the following data and corresponding...Ch. 3.1 - Consider the following data. Period Rate of Return...Ch. 3.1 - Consider a sample with data values of 27, 25, 20,...Ch. 3.1 - Consider a sample with data values of 53, 55, 70,...Ch. 3.1 - The average number of minutes Americans commute to...Ch. 3.1 - The Wall Street Journal reported that the median...Ch. 3.1 - Which companies spend the most money on...Ch. 3.1 - Over a nine-month period, OutdoorGearLab tested...

Ch. 3.1 - According to the National Education Association...Ch. 3.1 - The Big Bang Theory, a situation comedy featuring...Ch. 3.1 - In automobile mileage and gasoline-consumption...Ch. 3.1 - The data contained in the file named StateUnemp...Ch. 3.1 - Martinez Auto Supplies has retail stores located...Ch. 3.1 - The grade point average for college students is...Ch. 3.1 - The following table shows the total return and the...Ch. 3.1 - Based on a survey of masters programs in business...Ch. 3.1 - Annual revenue for Corning Supplies grew by 5.5%...Ch. 3.1 - Suppose that at the beginning of 2004 you invested...Ch. 3.1 - If an asset declines in value from 5000 to 3500...Ch. 3.1 - The current value of a company is 25 million. If...Ch. 3.2 - Consider a sample with data values of 10, 20, 12,...Ch. 3.2 - Consider a sample with data values of 10, 20, 12,...Ch. 3.2 - Consider a sample with data values of 27, 25, 20,...Ch. 3.2 - Data collected by the Oil Price information...Ch. 3.2 - The results of a search to find the least...Ch. 3.2 - The Australian Open is the first of the four grand...Ch. 3.2 - The Los Angeles times regularly reports the air...Ch. 3.2 - The following data were used to construct the...Ch. 3.2 - The results of Accounting Principals latest...Ch. 3.2 - Advertising age annually compiles a list of the...Ch. 3.2 - Scores turned in by an amateur golfer at the...Ch. 3.2 - The following times were recorded by the...Ch. 3.3 - Consider a sample with data values of 10, 20, 12,...Ch. 3.3 - Consider a sample with a mean of 500 and a...Ch. 3.3 - Consider a sample with a mean of 30 and a standard...Ch. 3.3 - Suppose the data have a bell-shaped distribution...Ch. 3.3 - The results of a national survey showed that on...Ch. 3.3 - The energy information Administration reported...Ch. 3.3 - The Graduate Management Admission Test (GMAT) is a...Ch. 3.3 - Many families in California are using backyard...Ch. 3.3 - According to a Los Angeles Times study of more...Ch. 3.3 - A sample of 10 NCAA college basketball game scores...Ch. 3.3 - The Wall Street Journal reported that Walmart...Ch. 3.4 - Consider a sample with data values of 27, 25, 20,...Ch. 3.4 - Show the box plot for the data in exercise 46.Ch. 3.4 - Show the five-number summary and the box plot for...Ch. 3.4 - A data set has a first quartile of 42 and a third...Ch. 3.4 - Naples, Florida, hosts a half-marathon (13.1-mile...Ch. 3.4 - Annual sales, in millions of dollars, for 21...Ch. 3.4 - Consumer Reports provided overall customer...Ch. 3.4 - Fortune magazines list of the worlds most admired...Ch. 3.4 - The Bureau of Transportation Statistics keeps...Ch. 3.5 - Five observations taken for two variables follow....Ch. 3.5 - Five observations taken for two variables follow....Ch. 3.5 - Ten major college football bowl games were played...Ch. 3.5 - A department of transportations study on driving...Ch. 3.5 - Over the past 40 years, the percentage of homes in...Ch. 3.5 - The Russell 1000 is a stock market index...Ch. 3.5 - A random sample of 30 colleges from Kiplingers...Ch. 3 - The average number of times Americans dine out in...Ch. 3 - USA Today reports that NCAA colleges and...Ch. 3 - The average waiting time for a patient at an El...Ch. 3 - U.S. companies lose 63.2 billion per year from...Ch. 3 - A study of smartphone users shows that 68% of...Ch. 3 - Public transportation and the automobile are two...Ch. 3 - In 2007 the New York Times reported that the...Ch. 3 - The data contained in the DATAfile named...Ch. 3 - Travel + Leisure magazine provides an annual list...Ch. 3 - The 32 teams in the National Football League (NFL)...Ch. 3 - Does a major league baseball teams record during...Ch. 3 - The days to maturity for a sample of five money...Ch. 3 - Automobiles traveling on a road with a posted...Ch. 3 - The Panama Railroad Company was established in...Ch. 3 - Pelican Stores Pelican Stores, a division of...Ch. 3 - Motion Picture Industry The motion picture...Ch. 3 - Business Schools of Asia-Pacific The pursuit of a...Ch. 3 - African Elephant Populations Although millions of...

Find more solutions based on key concepts

Show solutions (Rational Self-Interest) If behavior is governed by rational self-interest, why do people make charitable contr...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Are minimum-wage laws a better explanation for structural unemployment among teenagers or among college graduat...

Brief Principles of Macroeconomics (MindTap Course List)

Discuss each of the following statements from the standpoints of equality and efficiency. a. Everyone in societ...

Principles of Economics (MindTap Course List)

If the interest rate is zero, then 100 to be paid in 10 years has a present value that is a. less than 100. b. ...

Principles of Macroeconomics (MindTap Course List)

For any events A and B with P(B) 0, show that P(A|B) + P(A|B) = 1.

Probability and Statistics for Engineering and the Sciences

An economy produces hot dogs and hamburgers. If a discovery of the remarkable health benefits of hot dogs were ...

Principles of Microeconomics (MindTap Course List)

Demonstrate your understanding of some of the coding schemes discussed in Technology Summary 5.2 (pp. 159160) b...

Accounting Information Systems

Explain in what sense scheduling is a control function of operations managers.

Foundations of Business (MindTap Course List)

Internal Controls Ramonas Clothing is a retail store specializing in womens clothing. The store has established...

Corporate Financial Accounting

Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded reve...

Cornerstones of Financial Accounting

CORPORATE VALUATION Scampini Technologies is expected to generate 25 million in free cash flow next year, and F...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

Distinguish between the accounting for capital expenditures and revenue expenditures.

Financial & Managerial Accounting

FINANCIAL LEVERAGE EFFECTS Firms HL and LL are identical except for their financial leverage ratios and the int...

Fundamentals of Financial Management (MindTap Course List)

Every chapter provides an editing exercise to fine-tune your grammar and mechanics skills. The following meetin...

Essentials of Business Communication (MindTap Course List)

EXPECTATIONS THEORY AND INFLATION Suppose 2-year Treasury bonds yield 4.1%, while 1-year bonds yield 3.2%. r is...

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

PETTY CASH RECORD AND JOURNAL ENTRIES On May 1, a petty cash fund was established for 150. The following vouche...

College Accounting, Chapters 1-27

Layton Company purchased tool sharpening equipment on October 1 for 108,000. The equipment was expected to have...

Financial Accounting

Frank Piechowski, plant manager for a Minnesota North Woods Appliance Corporation refrigerator plant, just rece...

Management, Loose-Leaf Version

Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by ...

Financial And Managerial Accounting

An economy consists of three workers: Larry, Moe, and Curly. Each works 10 hours a day and can produce two serv...

Essentials of Economics (MindTap Course List)

Summarize how marketing creates value through the four types of utility.

Contemporary Marketing

Describe how and why product warranties are important marketing tools

MKTG 12:STUDENT ED.-TEXT

a. Describe the entries that have been posted to the following accounts after the Change Fund was established. ...

College Accounting (Book Only): A Career Approach

Define check tampering.

Accounting Information Systems

The following were selected from among the transactions completed by Babcock Company during November of the cur...

Financial Accounting

Use the following information for Exercises 2-47 through 2-49. Jasper Company provided the following informatio...

Managerial Accounting: The Cornerstone of Business Decision-Making

Stock investment transactions, trading securities Zeus Investments Inc. is a regional investment company that b...

Financial & Managerial Accounting

On January 2, 2019, Lindsay Corporation issued 800,000 of 8% convertible bonds at par. The bonds mature in 10 y...

Intermediate Accounting: Reporting And Analysis

Answer the following questions: a. Describe the crowding-out effect of an increase in government purchases. b. ...

Exploring Economics

Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipme...

Principles of Macroeconomics (MindTap Course List)

Ratio of sales to assets Financial statement data for years ending December 31 for Latchkey Company follows : a...

Accounting (Text Only)

Estimating Exxon Mobil Corporation's Intrinsic Stock Value Use online resources to work on this chapter's quest...

Fundamentals of Financial Management (MindTap Course List)

EFFECTIVE INTEREST RATE You borrow 85,000; the annual loan payments are 8,273.59 for 30 years. What interest ra...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

The business environment is increasingly demanding the use of OLRT systems for more up-to-date information. Ide...

Pkg Acc Infor Systems MS VISIO CD

REDEMPTION OF BONDS ISSUED AT A PREMIUM Miller Miller sold bonds at a premium for 525,000 (premium of 25,000) ...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

C. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account...

College Accounting (Book Only): A Career Approach

What does it mean to say that the market feeds Cleveland, Austin, Atlanta, or Indianapolis?

Microeconomics

An increase in our federal governments budget deficit will likely a. increase the national debt. b. increase in...

Economics For Today

Is it true that, under a proportional income tax structure, a person who earns a high income will pay more in t...

Macroeconomics

If Real GDP is 487 billion in year 1 and 498 billion in year 2, what is the economic growth rate?

Economics (MindTap Course List)

Present value of amounts due Assume that you are going to receive 50,000 in 10 years. The current market rate o...

Corporate Financial Accounting

Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collect...

Survey of Accounting (Accounting I)

Why must the time it takes to evaluate and select suppliers decrease? What three methods would you think have t...

Purchasing and Supply Chain Management

FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. Flas...

Cornerstones of Cost Management (Cornerstones Series)

The information listed below refers to the employees of Brennan Company for the year ended December 31, 2019. T...

PAYROLL ACCT.,2019 ED.(LL)-TEXT

Yearly automobile inspections are required for residents of the state of Pennsylvania. Suppose that 12% of all ...

Practical Management Science

An investigation of the relationship between x = Traffic flow (thousands of cars per 24 hours) and y = Lead con...

Introduction To Statistics And Data Analysis

Although tables of binomial probabilities can be found in most libraries, such tables are often inadequate. Eit...

Understanding Basic Statistics

The following data are believed to have come from a normal distribution. Use the goodness of fit test and α = ....

Essentials Of Statistics For Business & Economics

A researcher reports an F-ratio with dfbetween=2 and dfwithin=30 for an independent-measures ANOVA. a. How many...

Statistics for The Behavioral Sciences (MindTap Course List)

The SAT is standardized so that the average score on the verbal test is 500 each year. If you select a group of...

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Identify the scale of measurement that allows each of the following conclusions. Toms score is larger than Bill...

Research Methods for the Behavioral Sciences (MindTap Course List)

Exercises You can use the following problems as a self-test on the material presented in this review. If you ca...

Essentials Of Statistics

What is the general purpose of a manipulation check?

Research Methods for the Behavioral Sciences (MindTap Course List)

For problems 81-90, perform the indicated operations and express answers in simplest radical form. Objective 5 ...

Intermediate Algebra

Evaluate the integral, if it exists. 01v2cos(v3)dv

Single Variable Calculus: Early Transcendentals

EXERCISES Reminder Round all answers to two decimal places unless otherwise indicated. Fixed and Variable Costs...

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

Find each product mentally: (x7)(x+5)

Elementary Technical Mathematics

APR Suppose you purchase a laptop computer for $449, make a 10% down payment, and agree to repay the balance in...

Mathematical Excursions (MindTap Course List)

Find polar forms for zw, z/w, and 1/z by first putting z and w into polar form. 30. z=434i,w=8i

Single Variable Calculus: Early Transcendentals, Volume I

In Exercises 1 to 8, use the figure provided. If mCDmAB, write an inequality that compares mA and mC.

Elementary Geometry for College Students

In Exercises 516, evaluate the given quantity. log42

Finite Mathematics

In Exercises 3548, use mathematical induction to prove that the given statement is true for all positive intege...

Elements Of Modern Algebra

Let a=log2,b=log3, and c=log7. In Exercises 2946, use the logarithm identities to express the given quantity in...

Applied Calculus

ELECTRICITY GENERATION Electricity in the United States is generated from many sources. The following table giv...

Finite Mathematics for the Managerial, Life, and Social Sciences

Polar Equations to Rectangular Equations Convert the polar equation to rectangular coordinates. 55. r cos = 6

Precalculus: Mathematics for Calculus (Standalone Book)

When the rectangle in the accompanying drawing whose dimensions are 16 by 9 is cut into pieces and rearranged, ...

Elementary Geometry For College Students, 7e

Limit and Continuity In Exercises 11-24, find the limit and discuss the continuity of the function. lim(x,y)(0,...

Multivariable Calculus

In Exercises 1316, find the distance between the given pairs of points. (a,a)and(b,b)

Finite Mathematics and Applied Calculus (MindTap Course List)

List the first five terms of the sequence. 5. an=(1)n15n

Single Variable Calculus

The temperature at a point (x,y,z) is given by T(x,y,z)=200ex23y29z2 where T is measured in C and x, y, z in me...

Calculus (MindTap Course List)

Eliminate the parameter t in each of the following: x=tant,y=sect

Trigonometry (MindTap Course List)

Discovery and Writing Explain what is meant by rationalizing the denominator of a radical expression.

College Algebra (MindTap Course List)

What is the number of the integral formula in your texts Table of Integrals that may be used to evaluate x2+2x+...

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

2
1
0
does not exist

Study Guide for Stewart's Multivariable Calculus, 8th

The voltage V in a simple electrical circuit is slowly decreasing as the battery wears out. The resistance R is...

Multivariable Calculus

Graphical, Numerical, and Analytic Analysis In Exercises 61-64, use a graphing utility to graph f on the interv...

Calculus: An Applied Approach (MindTap Course List)

Finding Parametric Equations In Exercises 17-24. find a set of parametric equations of the line with the given ...

Calculus: Early Transcendental Functions

In Exercises 68 and 69, determine whether the given points lie on a straight line. 69. A(2, 1), B(1, 7), and C(...

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Finding the Interval of Convergence In Exercises 15-38, find the interval of convergence of the power series. (...

Calculus: Early Transcendental Functions (MindTap Course List)

5. $20,000 is invested for 6 months at an annual simple interest rate of .
(a) How much interest will be earned...

Mathematical Applications for the Management, Life, and Social Sciences

Analyze the following numbers. 23.023

Mathematics For Machine Technology

a. Define H:RR by the rule H(x)=x2 , for each real number x. (i) Is H one-to-one? Prove or give a counterexampl...

Discrete Mathematics With Applications

Review In Exercises 53-70, determine the convergence or divergence of the series using any appropriate test fro...

Calculus (MindTap Course List)

(a) Use a graphing device to graph f(x)=2x3x. (b) Starting with the graph in part (a), sketch a rough graph of ...

Calculus: Early Transcendentals

Finding an Indefinite Integral In Exercises 1-8, find the indefinite integral. x2+2x6x4dx

Calculus of a Single Variable

Set up and solve equations for the following business situations.
16. One-ninth of Polymer Plastics’ sales are ...

Contemporary Mathematics for Business & Consumers

Exercises 8-14 involve the information in Figure 9.114 on installing a drip irrigation system. flow long would ...

Mathematics: A Practical Odyssey

Use the following information to answer the next ten exercises. Forty-eight percent of all Californians registe...

Introductory Statistics

6. Consider a sample with data values of 53, 55, 70, 58, 64, 57, 53, 69, 57, 68, and 53. Compute the mean, medi...

Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)

Writing a Verbal Description In Exercises 3-12, write a verbal description of the algebraic expression without ...

College Algebra

In the following Exercises, use a suitable change of variables to determine the indefinite integral. 283. y5 ( ...

Calculus Volume 2

In Problems 1522 determine whether the given matrix is singular or nonsingular. If it is nonsingular, find A1 u...

A First Course in Differential Equations with Modeling Applications (MindTap Course List)