Statistics

Use the data collected in Project 1 to graph the following data values. 1. Use the 30 Dow Stock’s Average Price (in U.S. $) Per Stock collected on June 21st To construct a vertical bar graph like the example on page 76 of you textbook. Notice you will have to order your average price per Stock from the lowest price to the highest as you move up the y-axis. Decide on your scale, so your units will be uniform. This means you will have to approximate some of your values. In the graph on page 76, the scale is 100. Also, notice your x-axis will contain the names of your stocks. If you have your information from Project 1 in Excel, you will be able to do this much quicker by putting in what type of graph you need and the scale. Excel will produce a graph for you. Copy and paste the graph below After completing the graph above, pick one stock you may find an interest in learning more about, name the Stock, and give 2 or 3 statements of what you have learned about it. Apple Inc. Stocks appear to be more interesting worth learning about. Despite the major decline in the Stock, Apple stock prices still seem to be of higher value. Besides, it presented the highest stock price in the market and thus can be attractive to potential investors. Despite the fluctuating price of the Stock, the chances are high that Apple stock may still earn the company more operating income, especially when the share prices are undervalued. a) Do you already invest in the stock market? Do you think you may in the future? Why or why not? Currently, I don’t invest in the stock market. However, I envision investing in the stock market in the near future since the investment return appears to be lucrative for those involved in the market business. Besides, the efficient market hypothesis, when keenly used in the stock market, allows investors to analyze share prices in depth. Consequently, I can use this to enhance my investment in the stock market and improve investment return. Company News (you have already done this in Project 1) Commentary – 5 to 8 sentences – about a current event relevant to the company. Be sure to include a citation and reference [refer to the APA Format (mini-Guide) available via Moodle]. The news event analyzed was the impact of the coronavirus on stock investment for Apple. Inc. is owing to the news event, and the company share price fell by about 5.6%, which resulted in a decrease in the company operating income. The news event was attributed to fear, and thus, economic fall off. In essence, most investors were reluctant to invest their money in the stock market as most of the company investments are not performing well in the eve of the Coronavirus pandemic. However, the news of the coronavirus, which led to lock down in most countries, had a positive gain for the Walmart stores since the shopping for sanitizers and foodstuff went high (Tonya, 2020). Company Revenue (you have already done this in Project 1) Commentary – 5 to 8 sentences – about the company’s revenue. Apple Inc. appears to have a fluctuating revenue, considering the accounting period of 2018. The First Quarter of the year had an income of 61.137 billion, 53.265 billion in the second quarter, and $62.9 billion in the Third Quarter of the year. Generally, the company’s revenue has hardly fallen below $50 billion. Even though the revenue is promising, it is also important to note the declining pattern of the company revenue since 2016. The fourth Quarter of 2016 had a revenue of $78.351 billion, while the last Quarter of 2018, the revenue was $62.9 billion. This shows the need for the company to improve its marketing strategies as well as to enhance its sales and revenue turnover in the next years. The company revenues are indicated in the table below; Graph Information Construct a histogram on the company’s revenue for your Apple stock and a histogram on the company’s revenue for the second Stock of your team. Be sure to follow the steps on Page 58 of the textbook and remember to organize the data for both histograms from the smallest value to the largest value. To determine the boundaries refer back to Chapter 2 section 1 if you do not remember how to determine boundaries on your classes of data. Use five as your class size. Set up your frequency table to include class limits, class boundaries, and frequencies. If you use Excel to generate your frequency table and histogram, copy and paste below for each of your team’s stocks. PUT FREQUENCY TABLES HERE →↓ Year Quarter Revenue in Billion U.S. Dollars 2018 Q3 62.9 Q2 53.265 Q1 61.137 2017 Q4 88.293 Q3 52.579 Q2 45.408 Q1 52.896 2016 Q4 78.351 PUT HISTOGRAMS HERE. →↓ Company Net Income (you have already done this in Project 1) Commentary – 5 to 8 sentences – About the company’s net income. Be sure to reference Net Income (Billions, $ U.S.) While the company’s net income has been fluctuating, the pattern seems to be an average difference of $5 billion and below. This shows that despite the decline in the stock share prices, the company is yet to make huge losses and, therefore, still operates under healthy financial accounts. For instance, the difference in net income between the first Quarter and third Quarter of 2018 was $6 billion, while the difference between the second Quarter and third Quarter of 2018 was $0.305. The figures show minimal variations in the net income for the company. Graph Information Construct a pie graph on the company’s net income for your Apple stock and a pie graph on the company’s net income for the second Stock of your team. Be sure to follow the steps on Page 90 of the textbook, and remember to organize the data for both pie graphs by following the same steps 1 – 3 as outlined on pages 90 & 91. Use colors for the different categories, be sure to state the percentages either inside the circles or outside the circles. Be sure to include a legend. If you use Excel to generate the pie graph, it will do all of the above for you. Just cut and paste here. PUT PIE GRAPHS HERE. →↓ Company Revenue vs. Net Income (prior to 12 Quarters) Commentary – 5 to 8 sentences – about the company’s revenue vs. its net income over time (prior 12 Quarters). Be sure to include the definition of revenue and net income in your commentary. Revenue is the total amount that a company earns from total sales. On the other hand, net income is the amount a company accrues after accounting for all expenses and liabilities. It is generally the total revenue minus the total expenses. Considering the company revenue and net income, it can be deduced that the company’s net income increases with an increase in revenue. In this case, the company (Walmart store in this case) appear not to be making losses but operating within its cost of capital. In this case, liabilities do not exceed company revenue. In addition, it appears that over the 12 quarters, the company has had an increasing net income, which indicates profitability. This shows that company profit is growing rather than falling or stagnating. The same observation was realized for the Apple Company. The net income was noted to relate inversely with an increase in the company revenue. However, the pattern was fluctuating with a slight increase or decrease in the net income. PUT APPLE STOCK COLUMNS HERE. →↓ Year Quarter Revenue in Billion U.S. Dollars Net Income in Billion U.S. Dollars 2018 Q3 62.9 14.125 Q2 53.265 13.82 Q1 61.137 20.07 2017 Q4 88.293 10.71 Q3 52.579 8.72 Q2 45.408 11.03 Q1 52.896 17.89 2016 Q4 78.351 9.01 PUT SECOND STOCK COLUMNS HERE. →↓ Year Quarter Revenue in Billion U.S. Dollars Net Income in Billion U.S. Dollars 2020 Q1 141,671.00 4,141.00 2019 Q4 127,991.00 3,288.00 Q3 130,377.00 3,610.00 Q2 123,925.00 3,842.00 Q1 138,793.00 3,687.00 2018 Q4 124,894.00 1,710.00 Q3 128,028.00 861.00 Q2 122,690.00 2,134.00 Q1 136,267.00 2,175.00 2017 Q4 123,179.00 1,749.00 Q3 123,355.00 2,899.00 Q2 117,542.00 3,039.00 Scatter Plot Graphs, Correlation analysis (regression analysis) Answer the following questions. What is the importance of a scatter plot to a regression analysis? A Scatter plot supports determining the trend of the relationship between two or more variables. It also helps in determining the residuals, which may affect the significance of the relationship. Through the plot, one is able to understand if the relationship between the variables is negative or positive, as well as the existence of outliers in the data. What are the assumptions of regression analysis? The assumptions are that when the p-value is less than 0.05, then there is a significant relationship between variables, and thus the relationship cannot be assumed to have occurred by chance or randomness. What is the formula of the regression line? Y = mx + c What does the formula mean? The formula indicates that m is the slope and outlines the number of times x would increase. It is the coefficient of the formula. X is the value or amount of variable to be predicted. C is the intercept, which is the point where the trend line crosses the vertical axis. What does the R that was calculated mean? R in the regression analysis indicates the strength of the correlation between the variables of concern. It ranges between +1 and -1, where +1 indicates a perfectly positive correlation, while -1 indicates a perfect negative relationship. R also helps in understanding whether the correlation is weak or strong. What does the R² that was calculated mean? R2 indicates the percentage of variance explained Define outliers. Are there any outliers in the scatterplots? Outliers are values that appear abnormal as considered to other values in the dataset. They may be higher than expected or too low than expected in the dataset. Chapter 10 is where you will find the information stated above. There are formulas in chapter 10 that will generate the values needed to do a regression analysis, but they are very long and tedious to work through. When doing the work, you will need to either use your calculator, or you will need to use Excel. Graph Information Construct a Scatter Plot Graph and prepare a correlation analysis (regression analysis) using the revenue as the dependent variable and the net income as the independent variable. A scatter plot is to be constructed for PRIOR 12 QUARTERS FOR BOTH, the Apple stock, and the second Stock of your team. If you use Excel to generate the scatter plot graphs, it will also generate all of the correlation analysis data for you. Just cut and paste here. PUT APPLE STOCK SCATTER PLOT GRAPHS HERE. →↓ PUT SECOND STOCK SCATTER PLOT GRAPHS HERE. →↓ Company Earnings per Share Commentary – 5 to 8 sentences – about the company’s Earnings per Share (EPS) by Quarter for the last 12 Quarters. Earnings per Share (EPS, $). Be sure to include in your comments the definition of earnings per share. PUT COLUMN OF EARNINGS PER SHARE APPLE STOCK →↓ Year Quarter Earnings per Share (Diluted) 2018 Q3 2.95 Q2 2.34 Q1 2.73 2017 Q4 3.89 Q3 2.07 Q2 1.67 Q1 2.1 2016 Q4 3.36 Earnings per share for Apple were fluctuating mostly between 2 and 3. This can be attributed to the fluctuating net income for the company. However, there was a slight decrease for the earnings per share for the company in the last four quarters. This signals a reduced investment return, especially to the investors who trade in the Apple shares. PUT COLUMN OF EARNINGS PER SHARE SECOND STOCK →↓ Year Quarter Earnings per Share (Diluted) 2020 Q1 1.45 2019 Q4 1.15 Q3 1.26 Q2 1.33 Q1 1.25 2018 Q4 0.58 Q3 0.29 Q2 0.72 Q1 0.74 2017 Q4 0.58 Q3 0.96 Q2 1.00 Walmart store had increasing earnings per share, which make its shares worth investing. This can be attributed to the determined increasing pattern in the company revenue. As the revenue increases, the net income increases, which have a further positive effect on the company earnings per share. However, the increase was not high considering the last four quarters since the company only increased its shares by an average margin of 0.12 Company Dividends per Share Commentary – 5 to 8 sentences – about the company’s Dividends per Share by Quarter for the last 12 Quarters. Be sure to include in your comments the definition of dividends per share. PUT COLUMN OF DIVIDENDS PER SHARE APPLE STOCK →↓ Year Quarter Dividend 2018 Q3 0.73 Q2 0.73 Q1 0.73 2017 Q4 0.63 Q3 0.63 Q2 0.63 Q1 0.63 2016 Q4 0.57 PUT COLUMN OF DIVIDENDS PER SHARE SECOND STOCK →↓ Year Quarter Dividend 2020 Q1 2,855.00 2019 Q4 2,861.00 Q3 2,869.00 Q2 2,886.00 Q1 2,945.00 2018 Q4 2,946.00 Q3 2,967.00 Q2 3,010.00 Q1 2,996.00 2017 Q4 3,021.00 Q3 3,047.00 Q2 3,112.00