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Question: DOW_PEG. The price-to-earnings growth ratio


DOW_PEG. The price-to-earnings growth ratio, or PEG ratio, is the market’s valuation of a company relative to its earnings prospects. A PEG ratio of 1 indicates that the stock’s price is in line with growth expectations. A PEG ratio less than 1 suggests that the stock of the company is undervalued (typical of value stocks), whereas a PEG ratio greater than 1 suggests the stock is overvalued (typical of growth stocks). The accompanying table shows a portion of PEG ratios of companies listed on the Dow Jones Industrial Average.

Company …………………………………………………………………………………. PEG Ratio
3M (MMM) ………………………………………………………………………………………… 1.4
Alcoa (AA) ……………………………………………………………………………………….. 0.9
⋮ …………………………………………………………………………………………………………… ⋮
Walt Disney (DIS) …………………………………………………………………………………. 1.2

Source: www.finance.yahoo, data retrieved April 13, 2011.
Construct the stem-and-leaf diagram on the PEG ratio. Interpret your findings.


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> Money magazine (January 2007) reported that an average of 77 million adults in the United States make financial resolutions at the beginning of a new year. Consider the following frequency distribution, which reports the top financial resolutions of 1,02

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> Consider the following observations for a time series: a. Calculate the growth rates for Year 1–Year 2, Year 2–Year 3, and Year 3–Year 4. b. Calculate the average growth rate. Year 1 Year 2 Yea

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> In an attempt to determine whether a relationship exists between the price of a home (in $1,000s) and the number of days it takes to sell the home, a real estate agent collects data on the recent sales of eight homes. Price ……………………………………………………………………………

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> Construct a scatterplot with the following data. Does a linear relationship exist between x and y? 10 4 3 7 y 3 2 6 6 4

> Construct a scatterplot with the following data. Describe the relationship between x and y. 3 7 12 6. y 22 10 5 14 12

> Consider the following sample data: a. Calculate the range. b. Calculate MAD. c. Calculate the sample variance sample standard deviation. -10 12 -8 -2 -6

> A police officer is concerned with excessive speeds on a portion of Interstate 90 with a posted speed limit of 65 miles per hour. Using his radar gun, he records the following speeds for 25 cars and trucks: Construct a stem-and-leaf diagram. Are the of

> Consider the following population data: a. Calculate the range. b. Calculate MAD. c. Calculate the population variance. d. Calculate the population standard deviation. -4 2 -8 10

> What is the minimum sample size n required to estimate p with 95% confidence if the desired margin of error E = 0.08? The population proportion is estimated as from prior studies. What happens to n if the desired margin of error increases to E = 0.12?

> Go to www.finance.yahoo.com/ to get a current stock quote for General Electric, Co. (ticker symbol = GE). Then, click on historical prices to record the monthly adjusted close price of General Electric stock in 2016. Create a table that uses this informa

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> Consider the following population data: a. Calculate the range. b. Calculate MAD. c. Calculate the population variance. d. Calculate the population standard deviation. 34 42 12 10 22

> The following table shows sales for Nike (in $ millions) for the years 2011 through 2015. a. Use the growth rates for 2011–2012, 2012–2013, 2013–2014, and 2014–2015 to calculate th

> The following table shows the total revenue (in $ billions) for Walmart Stores, Inc., and Target Corp. for the years 2008–2010. a. Calculate the average growth rate for each firm. b. Which firm had the higher growth rate over the 200

> The returns for an auto firm are 5% in Year 1 and 3% in the first quarter of Year 2. Calculate the annualized return for the period.

> Home Depot and Lowe’s are the two largest home improvement retailers in the U.S. The following table shows the total revenue (in $ billions) for each retailer for the years 2008– 2010. a. Calculate the growth rate fo

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> Calculate the average growth rate from the following growth rates. 2.5% 3.6% 1.8% 2.2% 5.2%

> Consider the following observations for a time series: a. Calculate the growth rates for Year 1–Year 2, Year 2–Year 3, and Year 3–Year 4. b. Calculate the average growth rate. Year 1 Year 2 Yea

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> In the planning stage, a sample proportion is estimated as . Use this information to compute the minimum sample size n required to estimate p with 99% confidence if the desired margin of error E = 0.12. What happens to n if you decide to estimate p with

> The following histogram summarizes Apple Inc.’s monthly stock price for the years 2007 through 2011 (http://finance.yahoo.com, data retrieved April 20, 2012). a. Is the distribution symmetric? If not, is it positively or negatively sk

> A survey asked chief executives at leading U.S. firms the following question: “Where do you expect the U.S. economy to be 12 months from now?” A representative sample of their responses appears below: a. Construct f

> The returns from an investment are 2% in Year 1, 5% in Year 2, and 1.8% in the first half of Year 3. Calculate the annualized return for the entire period.

> The following relative frequency histogram summarizes the median household income for the 50 states in the United States (U.S. Census, 2010). Is the distribution symmetric? If not, is it positively or negatively skewed? What percentage of the states ha

> Given the following investment returns, calculate the geometric mean return. -3% 2% -5% 2.7% 3.1%

> Given the following investment returns, calculate the geometric mean return 4% 8% -5% 6%

> Given the following observations from a population, calculate the mean, the median, and the mode. 20 15 25 20 10 15 25 20 15

2.99

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