Question: The attached file contains hypothetical data for working this problem. Goodman Corporations and Landry Incorporateds stock prices and dividends, along with the Market Index, are
The attached file contains hypothetical data for working this problem. Goodman Corporations and Landry Incorporateds stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends.
| Data as given in the problem are shown below: | |||||
| Goodman Industries | Landry Incorporated | Market Index | |||
| Year | Stock Price | Dividend | Stock Price | Dividend | Includes Divs. |
| 2020 | $30.32 | $2.23 | $85.12 | $3.52 | 18,475.97 |
| 2019 | $23.53 | $2.65 | $79.32 | $3.65 | 12,174.55 |
| 2018 | $28.61 | $2.73 | $74.32 | $3.45 | 12,019.97 |
| 2017 | $15.21 | $2.57 | $87.12 | $3.47 | 10,743.05 |
| 2016 | $12.63 | $2.23 | $95.12 | $3.55 | 9,455.42 |
| 2015 | $13.21 | $2.25 | $84.25 | $3.25 | 8,163.96 |
| c. Construct a scatter diagram graph that shows Goodmans and Landry returns on the vertical axis and the Market Indexs returns on the horizontal axis. | |||||
| It is easiest to make scatter diagrams with a data set that has the X-axis variable in the left column, so we reformat the returns data calculated above and show it just below. | |||||
| Year | Index | Goodman | Landry | ||
| 2020 | 0.0% | 0.0% | 0.0% | ||
| 2019 | 0.0% | 0.0% | 0.0% | ||
| 2018 | 0.0% | 0.0% | 0.0% | ||
| 2017 | 0.0% | 0.0% | 0.0% | ||
| 2016 | 0.0% | 0.0% | 0.0% | ||
| To make the graph, we first selected the range with the returns and the column heads, then clicked the chart wizard, then choose the scatter diagram without connected lines. That gave us the data points. We then used the drawing toolbar to make free-hand ("by eye") regression lines, and changed the lines color and weights to match the dots. |
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