Question: 4.2.2 please round to the nearest 3 Example 4.2.2: Earnings surprise. Earnings per share (eps) is one of the major indicators of a company's profitability.
4.2.2 please round to the nearest 3
Example 4.2.2: Earnings surprise. Earnings per share (eps) is one of the major indicators of a company's profitability. Of interest, therefore, is the difference between expected earnings and reported earnings of a company. In the fiscal quarter ending April 2016, Walmart had an eps of 0-08, compared lo a consensus eps forecast of 0-88 . The earnings surprise as a percentage is 0.98 - 0.88 . 100% - 11.36% 0.8 The lable below lists the earrings surprise percentage of Walmart's competitors in the fiscal quarter ending in August 2016 or earlier. Company Earnings surprise (7%) Walmart 11.36 Target 7.89 Kroger 1 06 Whale Foods Costco -3.12 Supervalu -9.52 Analysis To determine whether the eps of Walmart compared to the other companies is unusual, the sample mean and sample standard deviation should be computed. The sample mean is calculated to be 1 43 and the sample standard deviation is calculated to be 7.53. Computing the 2-score for Walmart's earnings surprise percentage yields 11.36 - 1.43 - 1.32 7.53 Thus, Walmart's earnings surprise percentage is not considered too unusual in the grocery business because the z-score is less than ? Feedback? PARTICIPATION ACTIVITY 4.2.4: Using z-scores to compare data from two different distributionis. According to the United States Department of Health and Human Services, the mean height for Americans is 1.757 m for men and 1-618 m for women". The standard deviation is 0.074 m for men and 0.069 m for worrier. 1) What z-score corresponds to a man who is 1-853 m tall? Type as Check Show answer 2) What z-score corresponds to a woman who is 1-755 m tall? Type as: Check Show answer 3) Is the man or the woman taler with respect to their gender? Type as: man of woman Check Show answer FeedbackStep by Step Solution
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