Business firms occasionally buy back their own stock for various reasons, sometimes when they view the market price as a bargain compared to their view of its true worth. It has been observed that the market price of stock often increases around the time of the announcement of such a buyback. Consider the data on actual percent changes over three months in stock prices for firms announcing stock buybacks shown in Table 3.9.2.
in Table 3.9.2.
a. Construct a histogram of this data set.
b. Construct a stem-and-leaf style histogram of this data set using pen and paper. Your horizontal axis might include four columns of numbers (–0, 0, 1, and 2) representing the tens place.16
c. Based on these histograms, what can you say to summarize typical behavior of these stock prices following a buyback announcement?

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