StreetInsider.com reported 2002 earnings per share data for a sample of major companies (Feb. 12, 2003) Prior to 2002, financial analysts predicted the 2002 earnings per share for these same companies (Barron's Sep. 10, 2001) Use the following data to comment on differences between actual and estimated earnings per share.
Company Actual Predicted
AT&T 1.29 0.38
American Express 2.01 2.31
Citigroup 2.59 3.43
Coca-Cola 1.60 1.78
DuPoint 1.84 2.18
Exxon-Mobil 2.72 2.19
General Electric 1.51 1.71
Johnson & Johnson 2.28 2.18
McDonald's 0.77 1.55
Wal-Mart 1.81 1.74
a. Use a= .05 and test for any difference between the population mean actual and population meanpredicted earnings per share. What is the p-value? What is your conclusion?
b. What is the point estimate of the difference between the two means? Did the analysts tend to underestimate or overestimate the earnings?
c. At 95% confidence, what is the margin of error for the estimae in part(b)? What would you recommend based on this information?© BrainMass Inc. brainmass.com October 16, 2018, 10:19 pm ad1c9bdddf
This solution contains explanations and calculations with regards to statistically testing the difference between earnings per share for some major companies.
The sales manager of your company wishes to evaluate the performance of the company's sales representatives.
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The sales manager of your company wishes to evaluate the performance of the company's sales representatives. Each sales representative is solely responsible for one sales territory. You and the manager believe that sales performance substantially depends on the above collected data. The manager has asked you to analyze this data to identify "good" and "bad" sales representatives. Questionable representatives whose performance is substantially lower will get special training aimed at improving their sales techniques.
Analyze this data, i.e., calculate descriptive statistics--mean, standard deviation, and so on, and create tables and graphs. WARNING: Before starting, develop a "game plan" to analysis the data, i.e., ask yourself what is the goal of your analysis. The managerial report should summarizing the results of your analysis. The report should only contain the key statistical information, in non-technical terms. Try to include tables, figures, graphs as part of the report. AND talk to the graphs/figures/tables-i.e., what is in them that's so important?? Use bullets!! Include the other frequency distributions, descriptive statistics not in the report in an appendix. Further guidelines to writing the report are on the last page.View Full Posting Details