Answered: You decide to invest in stock in a…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.6: Summarizing Categorical Data

Problem 26PPS

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Question

You decide to invest in stock in a particular type of company and set the guideline that
you will only buy stock in companies that are ranked in the 80th percentile or above in
terms of dividends paid in the previous year. You are looking at a company that ranked
7 out of 450 companies that paid dividends in 2019.

a. Will this company qualify for your portfolio?

b. If you had the data on the total dividends paid by each of the 450 companies,
what would the mean and the median each tell you and how would you compute
each measure?

Definition Definition Middle value of a data set. The median divides a data set into two halves, and it also called the 50th percentile. The median is much less affected by outliers and skewed data than the mean. If the number of elements in a dataset is odd, then the middlemost element of the data arranged in ascending or descending order is the median. If the number of elements in the dataset is even, the average of the two central elements of the arranged data is the median of the set. For example, if a dataset has five items—12, 13, 21, 27, 31—the median is the third item in ascending order, or 21. If a dataset has six items—12, 13, 21, 27, 31, 33—the median is the average of the third (21) and fourth (27) items. It is calculated as follows: (21 + 27) / 2 = 24.

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