Compute the range and interquartile range

Question

Discussion:

Q1: According to the 2003 Annual Consumer Spending Survey, the average monthly Bank of America Visa  credit card charge was $1838. A sample of monthly credit card charges provides the following data.

1. Compute the mean and median

2. Compute the first and third quartiles

3. Compute the range and interquartile range.

4. Compute the variance and standard deviation

5. The skewness measure for these data is 2.12. Comment on the shape of this distribution. Is it the shape you would expect? Why or why not?

Monthly Charge
170
236
316
387
825
991
1333
1351
1428
1584
1688
1710
3396
4135
7450

Q2: Calculate the Weighted Average Cost of Capital (WACC)

(hint: use EXCEL function: sumproduct)

Example: The Firm's Cost of Capital

Security		Market Value		Rate of Return
Common Stock		100,000		18.50%
Preferred Stock		15,000		14.90%
Bonds (9% coupon)		225,000		11.20%
Bonds (8.5% coupon)		115,000		11.20%

Q3: From Yahoo finance select two stocks or two mutual funds. Make sure the selections are from different industries (e.g. utilities and retail; or, technology and manufacturing)

Pick two years worth of monthly returns data.

For each price series, show a time series, a histogram, calculate average returns, standard deviation and coefficient of variation.

Question: Which one is riskier?  Place the time series graph, the histogram and the descriptive statistics on a word document: Report format.

Q4: Pelican Stores, a division of National Clothing, is a chain of women's apparel stores operating throughout the country.  The chain recently ran a promotionin which discount coupons were sent to customers of other National Clothing stores.  Data collected for a sample of 100 in-store credit card transactions at Pelican Stores during one day while the promotion was running is provided below. The proprietary card method of payment refers to charges made using a National Clothing charge card.

Customer's who made a purchase using a discount coupon are referred to as promotional customers and customers who made a
purchaes but did not use a discount coupon are referred to as regular customers.

Because the promtional coupone were not sent to regular Pelican Stores customers, management considers the sales made to
people presenting the promotional coupons as sales it would not otherwise make. Of course, Pelican also hopes that the
promotional customers will continue to shop at its own stores.

Use the data to learn about Pelican's customers, specifically to evaluate the promotion involving discount coupons.

Answer the following questions. Show the crosstabulations and some of the associated charts.

1. What was the average sale by Regular and Promotional customers?

2. Was the average sales higher for women among Regular Customers? How about for Promotional?

3. Was the percentage of women higher among Regular or Promotional customers? Hint: use pivot tables and associated pivot charts

4. Does the relationship between Gender and Type of Customer vary by Marital Status?

5. What is the relationshop between age and net sales for regular and for promotional customers?

Hint: group the age variable to facilitate interpretation of the age variable.

Customer	Type of Customer	Items	Net Sales	Method of Payment	Gender	Marital Status	Age
1	Regular	1	39.50	Discover	Male	Married	32
2	Promotional	1	102.40	Proprietary Card	Female	Married	36
3	Regular	1	22.50	Proprietary Card	Female	Married	32
4	Promotional	5	100.40	Proprietary Card	Female	Married	28
5	Regular	2	54.00	MasterCard	Female	Married	34
6	Regular	1	44.50	MasterCard	Female	Married	44
7	Promotional	2	78.00	Proprietary Card	Female	Married	30
8	Regular	1	22.50	Visa	Female	Married	40
9	Promotional	2	56.52	Proprietary Card	Female	Married	46
10	Regular	1	44.50	Proprietary Card	Female	Married	36
11	Regular	1	29.50	Proprietary Card	Female	Married	48
12	Promotional	1	31.60	Proprietary Card	Female	Married	40
13	Promotional	9	160.40	Visa	Female	Married	40
14	Promotional	2	64.50	Visa	Female	Married	46
15	Regular	1	49.50	Visa	Male	Single	24
16	Promotional	2	71.40	Proprietary Card	Male	Single	36
17	Promotional	3	94.00	Proprietary Card	Female	Single	22
18	Regular	3	54.50	Discover	Female	Married	40
19	Promotional	2	38.50	MasterCard	Female	Married	32
20	Promotional	6	44.80	Proprietary Card	Female	Married	56
21	Promotional	1	31.60	Proprietary Card	Female	Single	28
22	Promotional	4	70.82	Proprietary Card	Female	Married	38
23	Promotional	7	266.00	American Express	Female	Married	50
24	Regular	2	74.00	Proprietary Card	Female	Married	42
25	Promotional	2	39.50	Visa	Male	Married	48
26	Promotional	1	30.02	Proprietary Card	Female	Married	60
27	Regular	1	44.50	Proprietary Card	Female	Married	54
28	Promotional	5	192.80	Proprietary Card	Female	Single	42
29	Promotional	3	71.20	Proprietary Card	Female	Married	32
30	Promotional	1	18.00	Proprietary Card	Female	Married	70
31	Promotional	2	63.20	MasterCard	Female	Married	28
32	Regular	1	75.00	Proprietary Card	Female	Married	52
33	Promotional	3	63.20	Proprietary Card	Female	Married	44
34	Regular	1	40.00	Proprietary Card	Female	Married	34
35	Promotional	5	105.50	MasterCard	Female	Married	56
36	Regular	1	29.50	MasterCard	Male	Single	36
37	Regular	2	102.50	Visa	Female	Single	42
38	Promotional	6	117.50	Proprietary Card	Female	Married	50
39	Promotional	5	13.23	Proprietary Card	Female	Married	44
40	Regular	2	52.50	Proprietary Card	Female	Married	58
41	Promotional	13	198.80	Proprietary Card	Female	Married	42
42	Promotional	4	19.50	Visa	Female	Married	46
43	Regular	2	123.50	Proprietary Card	Female	Married	48
44	Promotional	1	62.40	Proprietary Card	Female	Married	54
45	Promotional	2	23.80	Proprietary Card	Female	Married	38
46	Promotional	2	39.60	Proprietary Card	Female	Married	60
47	Regular	1	25.00	MasterCard	Female	Married	46
48	Promotional	3	63.64	Proprietary Card	Female	Married	30
49	Promotional	1	14.82	Proprietary Card	Female	Married	32
50	Promotional	9	145.20	MasterCard	Female	Married	46
51	Promotional	6	176.62	Proprietary Card	Female	Married	38
52	Promotional	5	118.80	Proprietary Card	Male	Married	68
53	Regular	1	58.00	Discover	Female	Single	78
54	Regular	2	74.00	Visa	Female	Single	20
55	Regular	2	49.50	MasterCard	Female	Married	32
56	Promotional	3	141.60	Proprietary Card	Female	Married	38
57	Promotional	6	123.10	Proprietary Card	Female	Married	54
58	Promotional	2	80.40	Proprietary Card	Female	Married	48
59	Promotional	4	65.20	MasterCard	Female	Married	46
60	Promotional	4	113.00	Proprietary Card	Female	Single	50
61	Promotional	1	108.80	Proprietary Card	Female	Married	46
62	Promotional	3	59.91	Proprietary Card	Female	Single	30
63	Promotional	5	53.60	Proprietary Card	Female	Married	54
64	Promotional	1	31.60	Proprietary Card	Female	Single	42
65	Promotional	2	49.50	Proprietary Card	Female	Married	48
66	Promotional	1	39.60	Proprietary Card	Female	Married	62
67	Promotional	2	59.50	Proprietary Card	Female	Married	34
68	Promotional	5	146.80	Proprietary Card	Female	Married	28
69	Promotional	2	47.20	Proprietary Card	Male	Married	46
70	Promotional	8	95.05	Proprietary Card	Female	Married	54
71	Promotional	5	155.32	Proprietary Card	Female	Married	30
72	Promotional	4	58.00	MasterCard	Female	Married	32
73	Regular	1	69.00	Proprietary Card	Female	Single	22
74	Promotional	2	46.50	Proprietary Card	Female	Married	32
75	Promotional	2	45.22	Proprietary Card	Female	Married	74
76	Promotional	4	84.74	Proprietary Card	Female	Married	62
77	Regular	2	39.00	Proprietary Card	Female	Married	42
78	Promotional	4	111.14	Proprietary Card	Female	Married	28
79	Promotional	3	86.80	Proprietary Card	Female	Married	38
80	Regular	2	89.00	Discover	Female	Married	54
81	Promotional	2	78.00	MasterCard	Female	Married	68
82	Promotional	6	53.20	Proprietary Card	Female	Single	30
83	Promotional	4	58.50	Visa	Female	Married	36
84	Promotional	3	46.00	Proprietary Card	Female	Married	44
85	Regular	2	37.50	Visa	Female	Married	44
86	Promotional	1	20.80	Proprietary Card	Female	Married	62
87	Regular	6	144.00	MasterCard	Female	Single	48
88	Regular	4	107.00	Proprietary Card	Female	Married	36
89	Promotional	1	31.60	Proprietary Card	Female	Single	20
90	Promotional	6	57.60	Proprietary Card	Female	Married	42
91	Promotional	4	95.20	Proprietary Card	Female	Married	54
92	Promotional	1	22.42	Proprietary Card	Female	Married	54
93	Regular	5	159.75	Proprietary Card	Female	Married	72
94	Promotional	17	229.50	Proprietary Card	Female	Married	30
95	Regular	3	66.00	American Express	Female	Married	46
96	Regular	1	39.50	MasterCard	Female	Married	44
97	Promotional	9	253.00	Proprietary Card	Female	Married	30
98	Promotional	10	287.59	Proprietary Card	Female	Married	52
99	Promotional	2	47.60	Proprietary Card	Female	Married	30
100	Promotional	1	28.44	Proprietary Card	Female	Married	44