# Question: Consider the profits of health care companies in the Fortune

Consider the profits of health care companies in the Fortune 500, as shown in Table 4.3.3.

a. Draw a histogram of this data set, and briefly describe the shape of the distribution.

b. Find the profit of the average firm.

c. Find the median profit level.

d. Compare the average and median; in particular, which is larger? Is this what you would expect for a distribution with this shape?

e. Draw the cumulative distribution function.

f. Your firm has a strategic plan that would increase profits to $200 million. What percentile would this profit level represent, with respect to this data set?

g. Your firm’s strategic plan indicates that the profit level might actually reach the 60th percentile. What value of profits does this represent?

QUESTION CONTINUES TO NEXT PAGE…….

a. Draw a histogram of this data set, and briefly describe the shape of the distribution.

b. Find the profit of the average firm.

c. Find the median profit level.

d. Compare the average and median; in particular, which is larger? Is this what you would expect for a distribution with this shape?

e. Draw the cumulative distribution function.

f. Your firm has a strategic plan that would increase profits to $200 million. What percentile would this profit level represent, with respect to this data set?

g. Your firm’s strategic plan indicates that the profit level might actually reach the 60th percentile. What value of profits does this represent?

QUESTION CONTINUES TO NEXT PAGE…….

## Answer to relevant Questions

The beta of a firm’s stock indicates the degree to which changes in stock price track changes in the stock market as a whole and is interpreted as the market risk of the portfolio. A beta of 1.0 indicates that, on average, ...For the experience variable: Answer the parts of exercise 1. b. Find the median. c. Construct a histogram, and give an approximate value for the mode. d. Compare these three summary measures. What do they tell you about ...a. What is the standard deviation? b. What does the standard deviation tell you about the relationship between individual data values and the average? c. What are the measurement units of the standard deviation? d. What is ...Your firm’s total advertising budget has been set for the year. You (as marketing manager) expect to spend about $1,500,000 on TV commercials, with an uncertainty of $200,000 as the standard deviation. Your advertising ...Airline ticket prices are generally optimized for the airline’s benefit, not for the consumer. On July 8, 2010, at the online travel agency http://www.expedia.com, the following airfares were proposed for roundtrip travel ...Post your question