A priceearnings ratio or PE ratio is calculated as a firms s

A price-earnings ratio or P/E ratio is calculated as a firm’s share price compared to the income or profit earned by the firm per share. Generally, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E ratio. The accompanying table shows the 26 companies that comprise the Dow Jones Industrial Average and their P/E ratios as of July 23, 2010 (at the time data were retrieved, data on four firms were not available).

1. PE Ratio.xlsxPreview the documentView in a new window Calculate and interpret the 25th, 50th, and 75th percentiles.

2. Construct a box plot. Are there any outliers? Is the distribution symmetric? If not, comment on its skewness.

Solution

25 ------------ 17

50---------- 33

75---------40

FOR THE OTHER QUESTION

I CAN GLADLY HELP YOU BUT

YOU SHOULD POST IT IN A NEW QUESTION