Rahi Patel
2/18/2014
FIN 230: Quiz 1

1A) how many elements does the data contain? 7
1B) how many variables are in the data set? 3
1C) which variables are quantitative and which are categorical? Size is categorical and Median income and Unemployment are quantitative.
2A) Compute the average income for the sample. Average=57,500
2B) Compute the average unemployment rate for the sample. Average=8.4
2C) What percentage of the towns in the sample are small towns? 3/7*100=42.8%
3A) How many variables are in the data set? 4
3B) which variables are categorical and which are quantitative? Exchange is categorical and Market cap, P/E ratio, and Gross profit margin are all quantitative.
3C) what is the average P/E Ratio for the sample. Average=22.16 or 22.2
3D) Show a frequency diagram for P/E using the following intervals. I answered it on Excel.
4A) Construct a frequency distribution. Answer in Excel
4B) Construct a relative frequency distribution. Answer in Excel
4C) Construct a cumulative frequency distribution. Answer in Excel
4D) Construct a relative cumulative frequency distribution. Answer in Excel
4E) What proportion of waiting times is below 46 minutes? Answer in Excel
5A) compute the mean, median and mode of the data set. Mean=7.5, Medican=7.250, and Mode=5,7,8
5B) What is the first quartile? Q1=5.125
5C) What is the third quartile? Q3= 9.750
6A) Compute the mean, variance, and SD for gasoline prices. Answer in Excel
6B) Compute the range and interquartile range. Answer in Excel
6C) The average price of gasoline for major states in the US is 3.665 and standard deviation of 0.129. How does this compare with these major cities? The average price of gasoline in the cities is 3.717 and average price of gasoline for major states in the US is 3.665. The average price for major states is lower than averages price for cities.

7A) Define Statistics- As the art and sciences of collecting, analyzing, presenting, and interpreting data.
7B) What are four things that business managers need to know? Accounting, Finance, Marketing, and production.
7C) Why do business managers need statistical thinking? Statistical thinking provides managers a way to solve problems in a diversity of contexts, add substance to decisions, and reduce guesswork. They must design quality into productgs.