Question: (a) A nancial analyst would like to study the stock market in Hong Kong. It is believed that the stock market will become overvalue when

 (a) A nancial analyst would like to study the stock marketin Hong Kong. It is believed that the stock market will becomeovervalue when one of the indicators price/earning (PIE) ratio is over 31.2.On this basis, he finds out 30 companies and records their P/Eratio as below: 43.6 15.4 13.8 19.5 50.3 32.5 8.2 38.4 17.2

(a) A nancial analyst would like to study the stock market in Hong Kong. It is believed that the stock market will become overvalue when one of the indicators price/earning (PIE) ratio is over 31.2. On this basis, he finds out 30 companies and records their P/E ratio as below: 43.6 15.4 13.8 19.5 50.3 32.5 8.2 38.4 17.2 12.0 14.8 21.8 28.9 25.0 16.0 46.5 26.8 33.8 2.9 28.3 57.8 18.5 16.5 30.6 23.5 36.4 27.0 11.3 18.2 47.4 Round the data down to an integer (e.g., 29.7 will be 29) and then prepare a stem-and-leaf display for the rounded data. [Do M put space between digits (e.g., put 1123 instead of 1 1 2 3).] Stem Leaf O 4 5 (b) Find the mean and median from the Lg data. mean = median position = median = (b) Find the mean and median from the original data. mean = median position = median = (c) Find the variance and standard deviation from the original data. According to the formula [select one below] OH = Ex;/N Oo? = E(xi - 1)2/ N Os? = E(xi - a)2/ (n- 1) Ox = Exiln variance = standard deviation =(d) Find the interquartile range from the original data. 01: Q3: lQR = A v (e) Describe the skewness of the distribution of the data with reason. The distribution is because A v . (f) Find the coefficient of variation from the original data. coefficient of variation = A v % (9) Briefly comment on whether or not the stock market in Hong Kong is expensive. Also, comment on the variation of the data. The stock market in Hong Kong bit high according to the A v A v . expensive because the mean of the P/E ratio as well as % of the data in the sample is 4} than .Also, the variation is a little (h) To reconrm the above comments, the financial analyst extends his survey to 267 companies and summarizes their PIE ratio into the following frequency table: PIE ratio Frequency Percentage Cummulative freq Cummulative % O

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