BNAD 276 Chapter 3

Nadia purchased 200 shares of XYZ stock at $20 per share. When the stock decreased in value to $15 share, Nadia purchased 300 more shares of XYZ stock. The weighted average price per share that Nadia paid for XYZ stock is _____.

$17

If a data set has a standard deviation of 4 units and a mean of 10 units, the coefficient of variation is _____

0.4 (4/10)

Place the following list in order, from beginning to end, for the steps required to calculate a particular percentile for a data set.

1. Arrange data set in ascending order. 2. Determine the approximate location. 3. Determine whether the value provided by Lp is an integer. 4. Select or interpolate the appropriate value from the data set.

Place in order, from beginning to end, the steps to calculate the mean absolute deviation.

1. Calculate the arithmetic mean for the data set 2. Find the absolute difference between each data set value and the mean. 3. Sum the absolute differences 4. Divide by the sample (or the population) size

When a box plot is constructed, an outlier is a data point that is farther than

1.5xIQR from Q1 to Q3

Quartiles divide the data set into section of

25 percentiles

Quartiles divide the data into ______ equal parts

4

Mean-variance analysis is used to measure the performance of an asset based on its rate of return. Specifically, evaluating the rate of return on the basis of ________.

risk and reward

a researcher wants to compare the variability of two data sets that have different units of measurement, what is most useful as a relative measure of dispersion?

the coefficient of variation

Which of the following values are included in a box plot?

the first quartile

T of F: The mean is the most widely used measure of central location for quantitative data

true

Two widely used measures of dispersion are

variance and the standard deviation

when a mean is calculated and some observations are given greater importance, we refer to this measure of central location as a

weighted mean

Chebyshev's theorem is applicable

when the data has any shape

When the correlation coefficient approaches the value _____, it indicates that there is a weak relationship between the two variables

zero

Which of the following is true when using empirical rule for a sample observations

Approximately 68% of all observations are in the interval

The median is defined as

The middle value in a data set.

The numerical measure that reveals only the direction of the linear relationship between two variables, but the not the strength of the linear relationship, is referred to as _________. The _________ describes both the direction and the strength of the linear relationship between two random variables.

covariance

A correlation coefficient

describes both the direction and strength of the linear relationship between two random variables

When calculating average growth rates, we apply the formula for the

geometric mean

diane wants to calculate her average annual return on an investment that she made three years ago. What value will provide diane with the most accurate measure of the average annual return?

geometric mean

the _____ is the multiplicative average of a data set

geometric mean

The average of the absolute differences between the values of the data set and the mean is the

mean absolute deviation

Generally, the _____ is the best measure of central location when outliers are present

median

For a qualitative data set, the most meaningful measure of central location is the ______.

mode

The _____ is a measure of central location that is the most frequently occurring value in the data set

mode

summarizing a qualitative data set, the ____ is the best measure of central location

mode

in a box plot, if the median is right or center and the left whisker is longer than the right whisker, the the distribution is

negatively skewed

the arithmetic mean is usually not a good measure of central location if a(n) ______ exists

outlier

If the covariance between two random variables x and y is positive, then x and y have a(n) ______

positive linear relationship

in a box plot, if the median is left or center and the right whisker is longer than the left whisker, the the distribution is

positively skewed

The Sharpe ratio determine the additional __________ an investor will receive for each additional unit of risk taken.

reward