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Descriptive Statistics - Financial

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• Warren Buffett is the Chairman and CEO of Berkshire Hathaway. Even though the firm has approximately 200,000 employees, Mr. Buffett has a staff of under twenty at the Omaha corporate headquarters. Do you believe that more companies should be run in this matter? Why or why not?

• Additionally, Warren Buffett typically does not invest in international companies. However, other investors do invest internationally. What are the advantages and disadvantages of international investing? I look forward to your response.

• The shareholders are the owners of the company. They elect the members of the Board of Directors. The members of the Board of Directors select the officers of the company. The shareholders are trying to earn a return on their investment. Is it important for officers of a company to also be shareholders in that company? Why or why not?

• Do you think that stock options for managers more correctly align the interests of shareholders and managers? Why or why not?

• Please calculate the correlation coefficient of returns between an international stock and a U.S. stock over the past year. You get to choose the stocks.

• Can there be a conflict between bondholders and stockholders in a firm? For example, couldn't stockholders benefit from a relatively high debt ratio?

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Financial
• Warren Buffett is the Chairman and CEO of Berkshire Hathaway. Even though the firm has approximately 200,000 employees, Mr. Buffett has a staff of under twenty at the Omaha corporate headquarters. Do you believe that more companies should be run in this matter? Why or why not?
Companies appear to have adopted a new perspective on the role of their corporate headquarters. Instead of considering it a cost factor that can be easily slashed, companies seem to have recognized the need for a stronger corporate hand.
On the one hand, they want to reduce corporate overheads, bureaucracy, and harmful interferences in their business divisions.
On the other hand, they also want to develop and maintain the corporate capabilities that allow their company to compete with its rivals. While resolving this dilemma has always been an important task, finding the right balance is more challenging than ever. Moreover, companies are often inclined to follow trends, which results in a swing between centralization and decentralization.
Therefore, I belive that having a small headquarter staff it is a benefit for a large company, because in this way the employees could make their own decisions and the work they do it is more fluen and flexible.
• Additionally, Warren Buffett typically does not invest in international companies. However, other investors do invest internationally. What are the advantages and disadvantages of international investing? I look forward to your response.
There are different ways you can invest internationally: through mutual funds, American Depositary Receipts, exchange-traded funds, U.S.-traded foreign stocks, or direct investments in foreign markets.
Sudden changes in market value are only one important consideration in international investing. Changes in foreign currency exchange rates will affect all international investments, and there are other special risks you should consider before deciding whether to invest. The degree of risk may vary, depending on the type of investment and the market. For example, international mutual funds may be less risky than direct investments in foreign markets, and investing in developed economies may avoid some of the risks of investing in emerging markets.
By including exposure to both domestic and ...

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The solution answers a few descriptive statistics financially related questions.

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Descriptive statistics and charts..

Part 1: (20 Points) Moore Travel Agency, a nationwide travel agency, offers special rates on certain Caribbean cruises to senior citizens. The president of Moore Travel wants additional information on the ages of those people taking cruises. A random sample of 70 customers taking a cruise last year revealed these ages.

57 77 85 72 80 58 55
74 70 60 85 59 66 61
91 59 57 83 79 52 91
70 81 66 86 66 80 81
53 55 68 77 80 86 74
66 55 82 55 69 63 77
82 87 64 90 56 70 89
78 72 60 85 67 76 69
62 54 90 53 91 75 77
53 74 89 67 67 56 67

Use the 2k > n rule to prepare a Frequency Distribution of the above data set and then construct a Histogram, Frequency Polygon and Ogive.

Part 2: (30 Points) The following list contains the number of customers assisted by three financial advisors in a local bank over a 10-day period.

Financial Day
Advisor 1 2 3 4 5 6 7 8 9 10
Alan 41 36 30 26 23 22 23 20 17 18
Beth 33 31 35 29 32 32 30 29 34 27
Clair 22 24 25 26 31 35 35 37 38 39

Prepare: a.) Stem-and-Leaf Chart for Alan
b.) Ordered Array for Beth
c.) Box-and-Whisker Plot for Clair
d.) Pie Chart showing percentages for Alan, Beth and Clair
e.) Time Line (on one chart) for Alan, Beth and Clair
f.) 100% Bar Chart (on one chart) for Alan, Beth and Clair based on the company standard that financial advisors must assist at least 30 customers a day to be considered successful. (i.e., less than 30 is considered unsuccessful)

Part 3: (50 Points) Systematic Inflammatory response syndrome (SIRS) is a major problem for patients with disfunctioning organs. Medical researchers at the University of Pittsburgh (Journal of the American Medical Association, July 5, 1995) conducted a study of the incidents of SIRS in 22 patients with cirrhosis of the liver. The clinical characteristics of the 22 patients—all waiting liver transplants in the intensive care unit (ICU)—are reported in the accompanying table.
Organ Bile
Dysfunction Blood Level Age Apache Goris Blood
Group (mg/dL) (years) Scale Scale SIRS Culture Infection
Mild 1.22 54 21 6 No Positive No
Mild 1.89 37 21 5 No Positive Yes
Mild 0.58 59 19 5 No Negative No
Mild 0.13 24 12 4 No Negative No
Mild 2.21 39 7 3 No Negative No
Mild 0.96 75 10 2 No Negative No
Mild 0.54 40 23 9 Yes Positive No
Mild 1.11 44 27 8 Yes Negative No
Mild 2.81 51 26 10 Yes Positive No
Mild 1.11 28 18 7 Yes Positive No
Moderate 0.58 65 16 4 Yes Positive No
Moderate 0.38 57 15 5 Yes Positive No
Moderate 0.88 61 20 7 No Negative No
Moderate 2.45 37 15 5 Yes Positive No
Moderate 2.12 40 21 8 Yes Negative No
Moderate 0.68 48 29 11 Yes Negative No
Moderate 0.33 47 29 9 Yes Positive Yes
Moderate 0.18 60 31 12 Yes Positive Yes
Severe 0.76 57 30 9 Yes Positive Yes
Severe 1.05 48 23 7 Yes Positive Yes
Severe 0.44 58 25 8 Yes Positive Yes
Severe 1.39 65 27 9 Yes Positive Yes

a.) Develop a Pareto Chart for the Organ Dysfunction Group.
b.) Draw a Box-and-Whisker Plot for the Bile Blood Level
c.) Construct a Stem-and-Leaf Chart for age.
d.) Develop a Scatter plot for the Goris Scale (x-axis) and the Apache Scale (y-axis).
e.) Develop a 100% Bar Chart for Blood Culture
f.) Develop a Pie Chart for Infection

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