Using R/RStudio or Alteryx, follow the instructions below.

• 1a. Using the dataset we cleaned up and used in class (called "EPS rounding_after class" and provided for you as well as the data description sheet, "Data Description Sheet_EPS rounding_after class.xlsx"), graph a bar chart that shows separate plots for the frequency of the EPS digit after the decimal point (called `digit_diluted` in the dataset) based upon quarter of the year (1-4). Thus, you will have four separate plots or one plot with 4 separate panels or facets. (Hint: We did this in class but had a separate plot for each year instead of for each quarter.)
  • If you're usingR: useEPS rounding_after class.rdsDownload EPS rounding_after class.rdsfile
  • If you're usingAlteryx: useEPSrounding_after class.csvDownload EPS rounding_after class.csvfile
• 1b. What do you learn about the frequency of having a 4 versus the other nine numbers in the place after the decimal point based upon quarter? That is, which quarter or quarters have the smallest difference in the frequency of the integer 4 relative to the integer 5?
• 2a. Next, create and examine these same set of plots for just 1998. Thus, you will have four sets of graphs for that year.
• 2b. Next, create and examine these same set of plots for just 2019. Thus, you will have four sets of graphs for that year.
• 2c. What differences do you notice between 1998 and 2019 in the frequency of the integer 4?
• 3. Next, use your analytics skills to find and report the worst 10 offenders of EPS rounding to the SEC.
  • Specifically, create a table of the 10 worst offenders following the criteria below.
  • You will need to create a table that has one observation per company. Thus, you will need to aggregate each company's results down to one row using a summarize function.
  • Additionally, you will only include a company in the table if the aggregated results from that company meets these criteria:
    • The company has more than 56 observations (quarters/rows) in the original,"EPS rounding_after class,"dataset.
    • Less than 1.18% of all of the company's observations have a 4 in the place after the decimal point EPS (inEPS_diluted_cents).
    • More than 11% of all of the company's observations have a 5 in the place after the decimal point EPS (inEPS_diluted_cents).
    • (Hint: Create columns in your table for each of the three bullet points above and then use a filter function.)
• 3a. Submit this table. The table (or a screenshot of the table) must contain the ticker (tic), company name (conm), percentages of observations with 4 in the first place after the decimal, and percentages of observations with 5 in the first place after the decimal.
• 3b. What observations can you make about these companies?
• 3c. Are the three companies charged by the SEC (FULT, HCSG, and TILE) in the following article are in your table? (Maurer, Mark. 2021. "Sec Digs Deeper into Companies' EPS Manipulation." The Wall Street Journal. Dow Jones & Company, September 28, 2020.https://www.wsj.com/articles/sec-digs-deeper-into-companies-eps-manipulation-11633870803?st=9uxjeofyoi86b6r&reflink=desktopwebshare_permalink(Links to an external site.).) Isn't that really cool! (You don't have to answer that.)

Data Files

• If you are using R, useEPS rounding_after class.rdsDownload EPS rounding_after class.rds
• If you are using Alterxy, useEPS rounding_after class.csvDownload EPS rounding_after class.csv

Data description can be downloadedhereDownload here.