Consider the histogram in Figure 3 9 5 which indicates performance of
Consider the histogram in Figure 3.9.5, which indicates performance of recent on-site service contracts as a rate of return.
a. At the very high end, how many contracts were extreme outliers that earned over 900% per year?
b. How many contracts are outliers, earning 400% or more?
c. One contract, with a real estate firm that went bankrupt, lost all of its initial investment a few years after work began (hence, the –100% rate of return). Can you tell from the histogram that a contract lost all of its value? If not, what can you say about the worst-performing contracts?
d. How many contracts lost money (i.e., had negative rates of return)?
e. Describe the shape of this distribution.
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