Instruction:

Save this file as tg2_e1_yourlastname in your drive X. Open Microsoft Excel and perform the
required operations below and save it as tg2_e1_yourlastname in your drive X together with
your word file. Copy your answers from your MS Excel to your word file and upload both of
your files in your eLearning account.
1. The table below contains a portion of the data in the file named Fortune. Data on
stockholders’ equity, market value and profits for a sample of 50 Fortune 500 companies
are shown.

a. Prepare a scatter diagram to show the relationship between the variables Profit and
Stockholders’ Equity

Shareholders' Equity vs. Profit

$6,000.00

$5,000.00

$4,000.00
Profit

$3,000.00

$2,000.00

$1,000.00

$-
0 2 4 6 8 10 12
Shareholders' Equity

b. Comment on any relationship between the variables.

 The relationship between the two is also strong as the profit of the company increases
it shareholder’s equity. Because the usual way of maximizing the company’s profit is
through making sure that the company is profitable.

c. Prepare a scatter diagram to show the relationship between the variables Market
Value and Stockholders’ Equity

Chart Title
$40,000.00
market Value

$30,000.00

$20,000.00

$10,000.00

$-
0 2 4 6 8 10 12
Shareholders' equity

Stockholders' equity( $1000s)

Market Value ($1000s)
Linear (Stockholders' equity( $1000s))

d. Comment on any relationship between the variables.

In my own opinion, the relationship between the two is strong, as it shows.
Because when the market value increase, the shareholders’ equity also tends to
increase which means that the shares is marketable as well as the stakeholder’s equity
has a high value. This concludes that the objective of the company is to maximize the
shareholder’s equity by maximizing the market value.
2. Assume that the first set of scores in the table below represents the IQ scores of
children who have been participating in a school lunch program and the second set of
scores represent the IQs of a similar group of children who have not participated in the
program.
a. Prepare appropriate graphical representations of the frequency and relative
frequency distributions of each set.

Set 1 Frequency Relative Frequency

75-84 6 11.32%
85-94 17 32.08%
95-104 20 37.74%
105-114 8 15.09%
115-124 2 3.77%
Grand Total 53 100.00%

Row Labels Frequency Relative Frequency

82-91 7 17.95%
92-101 10 25.64%
102-111 14 35.90%
112-121 7 17.95%
122-131 1 2.56%
Grand Total 39 100.00%
b. Is the relative frequency or the frequency distribution more appropriate when
making comparisons between the two sets?

Answer: The relative frequency seems to be effective because it really shows

accurately the scores of the students accordingly. It helps to identify in which
students is doing well or not.

A manufacturing company produces steel housings for electrical equipment. The

main component part of the housing is a steel trough that is made out of a 14-gauge
steel coil. It is produced using a 250-ton progressive punch press with a wipe-down
operation that puts two 90-degree forms in the flat steel to make the trough. The
distance from one side of the form to the other is critical because of
weatherproofing in outdoor applications. The company requires that the width of
the trough be between 8.31 inches and 8.61 inches. The widths of the troughs, in
inches, are collected from a sample of 49 troughs and stored in Trough and shown
here:

a. Construct a frequency distribution and a percentage distribution.

Row Labels Frequency Relative Frequency
8.312-8.362 6 12.24%
8.362-8.412 12 24.49%
8.412-8.462 21 42.86%
8.462-8.512 10 20.41%
Grand Total 49 100.00%
b. Construct a histogram based on the frequency distribution.
25

20

15
Frequency
10
Relative Frequency
5

0
8.312-8.362 8.362-8.412 8.412-8.462 8.462-8.512
 Histogram
25
20
Frequency

15
10
Frequency
5
0
8.362 8.412 8.462 8.512
Bin

c. What can you conclude about the number of troughs that will meet the company’s
requirements of troughs being between 8.31 and 8.61 inches wide?
Based on my opinion, the trough will meet the company’s requirements because it
falls in the 8.31 and 8.61 inches.