Question: Please answer question a and b. Please include all the python used to achieve the answer. An equities analyst is studying the pharmaceutical industry and

Please answer question a and b. Please include all the python used to achieve the answer.

An equities analyst is studying the pharmaceutical industry and would like your help in exploring and understanding the financial data collected by her firm. Her main objective is to understand the structure of the pharmaceutical industry using some base financial measures. Financial data gathered on 21 firms in the pharmaceutical industry are available in the file *Pharmaceuticals.csv*. For each firm, the following variables are recorded:

Please answer question a and b. Please includePlease answer question a and b. Please include

Question 4 An equities analyst is studying the pharmaceutical industry and would like your help in exploring and understanding the financial data collected by her firm. Her main objective is to understand the structure of the pharmaceutical industry using some base financial measures. Financial data gathered on 21 firms in the pharmaceutical industry are available in the file Pharmaceuticals.csv. For each firm, the following variables are recorded 1. Market capitalization (in billions of dollars) 2. Beta 3. Price/Earnings ratio 4. Return on equity 5. Return on assets 6. Asset turnover 7. Leverage 8. Estimated revenue growth 9. Net profit margin 10. Median recommendation (across major brokerages) 11. Location of firm's headquarters 12. Stock exchange on which the firm is listed Given this data, do the following... a. Use only the numerical variables (1-9) to cluster the 21 firms. Justify the various choices made in conducting the cluster analysis, such as weights fo different variables, the specific clustering algorithm used, the number of clusters formed, and so on. b. Interpret the clusters with respect to the categorical variables and see if you can come up with appropriate names or descriptions for each cluster. 1 Symbol 2 ABT 3 AGN 4 AHM 5 AZN 6 AVE 7 BAY 8 BMY 9 CHTT 10 ELN 11 LLY 12 GSK 13 IVX 14 JNJ 15 MRX 16 MRK 17 NVS 18 PFE 19 PHA 20 SGP 21 WPI 22 WYE 23 Name Market_C: Beta PE_Ratio ROE ROA Asset_Turr Leverage Rev_Grow Net_Profit Median_R Location Exchange Abbott Lak 68.44 0.32 24.7 26.4 11.8 0.7 0.42 7.54 16.1 Moderate US NYSE Allergan, Ir 7.58 0.41 82.5 12.9 5.5 0.9 0.6 9.16 5.5 Moderate CANADA NYSE Amersham 6.3 0.46 20.7 14.9 7.8 0.9 0.27 7.05 11.2 Strong Buy UK NYSE AstraZene 67.63 0.52 21.5 27.4 15.4 0.9 0 15 18 Moderate UK NYSE Aventis 47.16 0.32 20.1 21.8 7.5 0.6 0.34 26.81 12.9 Moderate FRANCE NYSE Bayer AG 16.9 1.11 27.9 3.9 1.4 0.6 0 -3.17 2.6 Hold GERMANY NYSE Bristol-My 51.33 0.5 13.9 34.8 15.1 0.9 0.57 2.7 20.6 Moderate US NYSE Chattem, 0.41 0.85 26 24.1 4.3 0.6 3.51 6.38 7.5 Moderate US NASDAQ Elan Corpc 0.78 1.08 3.6 15.1 5.1 0.3 1.07 34.21 13.3 Moderate IRELAND NYSE Eli Lilly and 73.84 0.18 27.9 31 13.5 0.6 0.53 6.21 23.4 Hold US NYSE GlaxoSmiti 122.11 0.35 18 62.9 20.3 1 0.34 21.87 21.1 Hold UK NYSE IVAX Corp 2.6 0.65 19.9 21.4 6.8 0.6 1.45 13.99 11 Hold US AMEX Johnson & 173.93 0.46 28.4 28.6 16.3 0.9 0.1 9.37 17.9 Moderate US NYSE Medicis Ph 1.2 0.75 28.6 11.2 5.4 0.3 0.93 30.37 21.3 Moderate US NYSE Merck & C 132.56 0.46 18.9 40.6 15 1.1 0.28 17.35 14.1 Hold US NYSE Novartis A 96.65 0.19 21.6 17.9 11.2 0.5 0.06 -2.69 22.4 Hold SWITZERL NYSE Pfizer Inc 199.47 0.65 23.6 45.6 19.2 0.8 0.16 25.54 25.2 Moderate US NYSE Pharmacia 56.24 0.4 56.5 13.5 5.7 0.6 0.35 15 7.3 Hold US NYSE Schering-P 34.1 0.51 18.9 22.6 13.3 0.8 0 8.56 17.6 Hold US NYSE Watson PH 3.26 0.24 18.4 10.2 6.8 0.5 0.2 29.18 15.1 Moderate US NYSE Wyeth 48.19 0.63 13.1 54.9 13.4 0.6 1.12 0.36 25.5 Hold US NYSE

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!