Stocks may be categorized by sectors. Go to www.pearsonhighered.com/sullivanstats and download 3_2_27 using the file format of your choice. The data represent the one-year rate of return (in percent) for a sample of consumer cyclical stocks and industrial stocks for the period December 2013 through November 2014.

(a) Draw a relative frequency histogram for each sector using a lower class limit for the first class of -50 and a class width of 10. Which sector appears to have more dispersion?

(b) Determine the mean and median rate of return for each sector. Which sector has the higher mean rate of return? Which sector has the higher median rate of return?

(c) Determine the standard deviation rate of return for each sector. In finance, the standard deviation rate of return is called risk. Typically, an investor "pays" for a higher return by accepting more risk. Is the investor paying for higher returns for these sectors? Do you think the higher returns are worth the cost? Explain.