Question

In: Statistics and Probability

Listed below are the data for 20 companies in the New York Stock Exchange. Observation EPS...

Listed below are the data for 20 companies in the New York Stock Exchange.

Observation EPS rating Industry group strength

1    81 B

2    58 C

3    84 B

4 21 C

5    87 C

6    14 C

7 46    B

8 76 B

9 84 B

10    70    A

11 72 A

12 79 D

13 82    A

14 21    D

15    57 B

16    76 A

17    80    D

18 84    D

19    18    B

20    6 C

a. develop a cross tabulation using the eps data for the row variable and industry strength as the columb variables. Use classes of 1-25,26-50,51-75,and 76-100 for the eps data.

b. compute the row percentages. what do these percentages tell you about the eps data?

c. compute the column percentages. what do these percentage tell you about the industry groups?

Solutions

Expert Solution

1. Arrange the data shown below


2. Create a table as shown below
3. Count the number of companies in each Industry group with rating lying in the first ESP rating interval. Do this for each interval and write the count in the correct cell as shown below


4. Find the row total and column total
5. Find the percentage by dividing each total with 20

b. compute the row percentages. what do these percentages tell you about the eps data?
About 50% of the company have an eps data between 76 -100


c. compute the column percentages. what do these percentage tell you about the industry groups?
About 60% of the companing lies in the B and C industry groups.

The industry group are equally distributed.


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