Show the frequency distribution for the Gross Profit Margin using the five intervals below:, , , , and Gross Profit MarginFrequencyA. B. C. D. Choose the correct histogram from the above diagrams. e. What is the average price/earnings ratio (to 1 decimal)

Step-by-step explanation:

a) Number of variables in the data set : 5

b) A quantitative variable is the one which can be quantitatively measured. i.e. it is a numerical value.

A categorical variable is the one that can take one value from a limited number of fixed values.

Exchange is a Categorical Variable. Price/Earnings Ratio is a Quantitative Variable. Gross Profit Margin (%) is a Quantitative Variable.

c. Out of the 25 stocks, AMEX is the exchange for 5 stocks. So percent frequency is 5/25 = 0.2 = 20%.

NYSE is the exchange for 3 stocks. So percent frequency is 3/25 = 0.12 = 12%.

OTC is the exchange for 17 stocks. So percent frequency is 17/25 = 0.68 = 68%.

These percentages are correctly shown in graph a. So the answer is a.

d) The frequency distribution is

Gross Profit Margin                Frequency

0-14.9                                        2

15-29.9                                      6

30-44.9                                     8

45.59.9                                    6

60.74.9                                    3

As we come across the Gross Profit Margin values in the table, we add a | next to its respective interval and build the above table. E.g. the first value in the table under Gross Profit Margin is 36.7 which lies in the interval 30–44.9. So we add one | in fromt of that interval and so on until we cover the entire table. The number of | shows the frequency distribution of the values.

The correct histogram is A.

e. The average price/earnings ratio is found by adding all the 25 values in the table and dividing the answer by 25.

= 505.40/25

step-by-step explanation:

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b

2

−

b

b

3

+

7

b

2

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14

b

+

6

%

−

3

b

3

+

7

b

2

+

14

b

+

6

%

step-by-step explanation: