Comparing data characteristics to theoretical properties


Thirty companies comprise the DJIA. Just how big are these companies? One common method for measuring the size of a company is to use its market capitalization, which is computed by multiplying the number of stock shares by the price of a share of stock. On June 19, 2009, the market capitalization of these companies ranged from Caterpillar's $20.5 billion to ExxonMobil's $347.4 billion. The market capitalization values for the 30 companies that comprise the DJIA are stored in DowMarketCap.

Source: Data extracted from money.cnn.com, June 19, 2009.
Decide whether the market capitalization of companies in the DJIA appears to be approximately normally distributed by

a. comparing data characteristics to theoretical properties.

b. constructing a normal probability plot.

c. constructing a histogram.

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Accounting Basics: Comparing data characteristics to theoretical properties
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