Economics Data Sets Excel Homework
A Dataset on Fortune 500 Companies
Download the following file from Blackboard: Fortune.xlsx
Variables:
 This is a dataset for a sample of 50 Fortune 500 Companies.
 There are three Company Types:
 M=Manufacturing
 R=Retail
 S=Services
 Stockholders’ Equity ($)
 Market Value ($)
 Profit ($)
 Each must have a descriptive title.
 Axes in graphs and rows/columns in tables must be properly labeled.
 Answer the question associated with each Graph/ Table to get full credit.
Instructions for Tables and Graphs:
Economics Data Sets Excel Homework
Dataset Questions (40 points)
 How many variables are in the dataset?
 How many observations are in the dataset?
 Which variables are categorical and which are quantitative?
 Use Excel to find: number of observations, mean, median, 1st and 3rd quartiles, sample standard deviation, minimum and maximum for variables: Stockholders’ Equity, Market Value and Profit.
Statistics  Stockholders’ Equity  Market Value  Profit 
mean  
median  
sample std. dev.  
1st Quartile  
3rd Quartile  
minimum  
maximum  
No. of obs. 
 Company Type
 Using a PivotTable: Prepare the percentage frequency distribution of Company Type. No need to copy and paste the table to the homework. But you need it for the next step.
 Prepare a Pie Chart of the Company Type. Copy and Paste it here.
 Which is the most frequent Company type in the dataset?
 Company Type and Stockholders’ Equity
 Using a PivotTable: Prepare a cross tabulation of Company Type (rows) and Stockholders’ Equity (columns). min= 0, max=6000, by=1000 No need to copy and paste the table to the homework. But you need it for the next step.
 Prepare a 100% Stacked Bar Chart of Company Type (horizontal axis category) and Stockholders’ Equity (stacked categories). Copy and Paste it here.
 Which Company Type has the highest Stockholders’ Equity?
 Market Value and Stockholders’ Equity.
 Do a Scatter Plot of Market Value (vertical axis) and Stockholder’s Equity (horizontal axis). Add a linear trend line. Copy and Paste it here.
 Calculate the correlation between the Market Value and Stockholder’s Equity?
 Comment on the relationship. Is it positive or negative? Strong or weak? Do companies with higher Market Value also have higher Stockholder’s equity?
 Draw a histogram for Profit using a PivotTable. Group Settings: min= 0, max=1200, by=100.
 Comment on the shape of the histogram. Is it symmetric or skewed left/right?

Economics Data Sets Excel Homework
Probabilities and Basic Relationships (10 points)
Suppose we have a sample space: , with probabilities: , , , , , , and . Consider the following events with their corresponding set of sample points: , , and . Note:
 if A and B are mutually exclusive
 if A and B are mutually exclusive
 if A and B are independent
 = the probability of X success in n trials
 = the number of successes (only two possible outcomes: success and failure)
 = the probability of success of one trial (constant for all trials)
 = the number of trials (all trials are identical and independent)
 = combinatorial equation
 = the probability of x occurrences in an interval
 = the expected value or mean number of occurrences in an interval
 = is the mathematical constant 2.71828
Questions:
 Find the probabilities: , and .
 Find the set of sample points of events (this is a list of sample points {…}) and find ?
 Find the set of sample points of and find .
 Now use the formula to confirm your answer from part (b).
 Are events A and C mutually exclusive?
 Find and
 Calculate and . Are they the same?
 Are events A and B independent?
 Which are the parameters of this distribution function? (There are two.)
 Write the equation for the binomial probability distribution function two times.
 A university found that 10% of students withdraw from a math course. Assume 25 students are enrolled.
 Write the prob. distribution function with the specific parameters for this problem.
 Compute by hand (can use calculator but show some work) the prob. that exactly 2 withdraw.
 Compute by hand (can use calculator but show some work) the prob. that exactly 5 withdraw.
 Construct the probability distribution table of class withdrawals in Excel. This is a table of x and f(x). Generate one column for the number of x successes with numbers 0 to 25 in each row. Generate a second column with the probability f(x) of each success using the Excel function =BINOM.DIST(x, n, p, FALSE) in each row. Attach the table to the end of your homework.
 What is the probability that 5 or less will withdraw?
 Which are the parameters of this distribution function? (There is only one.)
 Write the Poisson probability distribution function two times.
 Customers for a restaurant arrive at an average rate of 36 customers per hour during lunchtime.
 Write the Poisson probability distribution function with the specific parameters for this problem.
 Calculate the probability of receiving exactly 25 customers in a 60minute interval.
 Calculate the probability of receiving exactly 30 customers in a 60minute interval.
 Construct the probability distribution table of new customer arrival. This is a table of x and f(x). Generate one column for the number of x occurrences with numbers 050 in each row. Generate a second column for the probability f(x) of each occurrence using the Excel function =POISSON.DIST(x, , FALSE) in each row. Attach the table to the end of your homework.
 What is the probability that between 15 and 20 guests will arrive in a 60minute interval?
 Rewrite the probability distribution function to calculate the probability of having exactly 10 customers in a 30minute interval. You do not need to calculate the probability, just adjust the parameter for a 30minute interval instead of a 60minute interval and write the equation.
Discrete Distributions Part 1: Binomial Probability Distribution (10 Points)
Binomial Probability Function:
Questions:
Discrete Distributions Part 2: Poisson Probability Distribution (10 Points)
Poisson Probability Function:
Questions: