The following summary measures relate to Current Dividend. It is taken from the list of sample...

 

Transcribed Image Text:

The following summary measures relate to "Current Dividend". It is taken from the list of sample companies who paid a dividend in the past year. Current Dividend in $ (a) (b) Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count 0.14 0.01 0.12 0.05 0.12 0.01 1.19 1.28 0.51 0.01 0.52 12.07 84 Use the above summary measures to compute a 95% confidence interval of the mean Dividend of all Companies that pay a dividend. How would you interpret this interval? (c) A reputable financial advisor recently made an estimate that when a company does pay a dividend, that dividend, on average, was 16.5 cents. Does your calculation from part (a) support this contention, disprove the contention or is it too close to say? Explain your reasoning. The following summary measures relate to "Current Dividend". It is taken from the list of sample companies who paid a dividend in the past year. Current Dividend in $ (a) (b) Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count 0.14 0.01 0.12 0.05 0.12 0.01 1.19 1.28 0.51 0.01 0.52 12.07 84 Use the above summary measures to compute a 95% confidence interval of the mean Dividend of all Companies that pay a dividend. How would you interpret this interval? (c) A reputable financial advisor recently made an estimate that when a company does pay a dividend, that dividend, on average, was 16.5 cents. Does your calculation from part (a) support this contention, disprove the contention or is it too close to say? Explain your reasoning.

Answer rating: 100% (QA)

a To compute a 95 confidence interval of the mean dividend of all companies that pay a dividend we can use the formula Confidence Interval Mean Critic... View the full answer