/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 117 The data values below represent ... [FREE SOLUTION] | 91Ó°ÊÓ

91Ó°ÊÓ

The data values below represent the closing prices of the 20 most actively traded stocks on the NASDAQ Stock Exchange (rounded to the nearest dollar) on May \(2,2014 .\) \(\begin{array}{cccccccccc}3 & 60 & 40 & 87 & 26 & 9 & 37 & 23 & 26 & 9 \\ 4 & 78 & 4 & 7 & 26 & 7 & 52 & 8 & 52 & 13\end{array}\) a. Sketch a dot plot or construct a stem-and-leaf plot. b. Find the median, the first quartile, and the third quartile. c. Sketch a box plot. What feature of the distribution displayed in the plot in part a is not obvious in the box plot? (Hint: Are there any gaps in the data?)

Short Answer

Expert verified
a) Create a dot or stem-and-leaf plot. b) Median: 24.5, Q1: 7.5, Q3: 38.5. c) Box plot doesn't show gaps between data.

Step by step solution

01

Arrange Data

First, rearrange the list of stock prices in ascending order to make creating plots and finding quartiles easier: 3, 4, 4, 7, 7, 8, 9, 9, 13, 23, 26, 26, 26, 37, 40, 52, 52, 60, 78, 87.
02

Construct the Dot Plot

A dot plot represents each data point as a dot above a number line. For the given dataset, place dots above each number along the line, stacking multiple dots vertically if numbers repeat. This helps visualize the frequency of each stock price.
03

Construct the Stem-and-Leaf Plot

In a stem-and-leaf plot, the first digit(s) of each number become the 'stem', and the final digit is the 'leaf'. For example, for the number 23, '2' is the stem and '3' is the leaf. Sort the numbers into stems, like: (0|3, 4, 4, 7, 7, 8, 9, 9), (1|3), (2|3, 6, 6, 6), (3|7), (4|0), (5|2, 2), (6|0), (7|8), (8|7).
04

Calculate the Median

To find the median, identify the middle number in the ordered dataset. With 20 data points, the median is the average of the 10th and 11th values: (23 + 26) / 2 = 24.5.
05

Find the First Quartile (Q1)

The first quartile (Q1) is the median of the first half of the dataset (the first 10 numbers): (7 + 8) / 2 = 7.5. This splits the dataset into groups with equal numbers of samples.
06

Find the Third Quartile (Q3)

The third quartile (Q3) is the median of the second half of the dataset (the last 10 numbers): (40 + 37) / 2 = 38.5.
07

Sketch the Box Plot

A box plot displays the median, quartiles, and possible outliers. Draw a box from Q1 to Q3 (7.5 to 38.5), a line at the median (24.5), and lines (whiskers) extending to the smallest and largest non-outlier data points.
08

Compare and Identify Features

The gap between 40 and 52 from the dataset is not visible in the box plot, which primarily highlights quartiles and median without showing all individual data spacing, such as gaps.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91Ó°ÊÓ!

Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Dot Plot
A dot plot is a simple way to visualize data by placing individual points, known as dots, above a number line. Each dot represents an observation or data point. When a number appears multiple times in your dataset, you stack the dots vertically. This makes it easy to see the frequency of each data value.

For instance, in the stock prices data, the number 26 appears three times, so three dots will be stacked above the position marked '26' on the number line. A dot plot is effective for small-range data as it allows you to see how often each value occurs, making patterns in the data clearer.

The simple visual style of dot plots makes them a great introduction to data visualization and extremely useful for teaching basic statistics concepts. They are particularly helpful when you want to communicate how many times each value occurs in the dataset.
Stem-and-Leaf Plot
The stem-and-leaf plot is another fascinating way to represent data. This plot splits each data value into the 'stem' and 'leaf.'

  • The 'stem' consists of all but the last digit of a number. For example, the number 87 would have a stem of 8.
  • The 'leaf' is the final digit of the number—in this case, 7.
Arranging items in a stem-and-leaf format helps preserve the original data values while showing how they are distributed more clearly. The stems are listed in a column, and the corresponding leaves are placed next to them, allowing you to quickly see data clusters and individual values.

This plot type is particularly useful for displaying the shape of a distribution and identifying any gaps or clusters in the data. It may take a little more time to construct than other plots, but it gives a full picture of all the data values.
Quartiles
Quartiles divide data into four equal parts, providing a way to summarize a dataset by describing the spread and central tendency. Here’s how they work:

  • The **First Quartile (Q1)** represents the 25th percentile, splitting off the lowest 25% of data. In our dataset, the Q1 value is 7.5.
  • The **Second Quartile (Q2),** or the median, divides the dataset in half. An even-numbered dataset takes the average of the two central numbers. Here, it’s 24.5.
  • The **Third Quartile (Q3)** is the 75th percentile, cutting off the lowest 75% of data. For this dataset, Q3 is 38.5.
Quartiles are crucial for identifying the spread and distribution of your data. They also allow you to calculate the interquartile range (IQR), which is useful for detecting outliers in your dataset.
Box Plot
A box plot, also known as a box-and-whisker plot, visualizes the central tendency, spread, and shape of a dataset. It's especially helpful for identifying outliers and comparing distributions among datasets.

The plot includes a box and two 'whiskers':
  • The **box** represents the interquartile range (IQR), extending from Q1 to Q3. It's where the middle 50% of the data lies.
  • The **line inside the box** indicates the median of the dataset.
  • The **whiskers** extend from the edges of the box to the smallest and largest values that aren’t outliers.
Outliers are points that fall outside of 1.5 times the IQR above Q3 or below Q1. While box plots are excellent for summarizing the data's spread and identifying potential outliers, they do not show the exact data values or spacing, meaning gaps that may be obvious in other plots, like dot plots, might not be visible here.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

The distribution of high school graduation rates in the United States in 2009 had a minimum value of 79.9 (Texas), first quartile of 84.0 , median of 87.4 , third quartile of 89.8 , and maximum value of 91.8 (Wyoming) (Statistical Abstract of the United States, data available on book's website.) a. Report the range and the interquartile range. b. Would a box plot show any potential outliers? Explain. c. The mean graduation rate is \(86.9,\) and the standard deviation is \(3.4 .\) For these data, does any state have a z-score that is larger than 3 in absolute value? Explain.

In 2014 , the five-number summary statistics for the distribution of statewide number of people (in thousands) without health insurance had a minimum of 31 (Vermont), \(\mathrm{Q} 1=156,\) median \(=418\) \(\mathrm{Q} 3=837,\) and maximum of 5047 (Texas) (Source: 2015 Current Population Survey Annual Social and Economic Supplement - United States). a. Is the distribution symmetric, skewed right, or skewed left? Why? b. The mean of this data is 719 and the range is 5016 . Which is the most plausible value for the standard deviation: \(-160,0,40,1000,\) or \(5000 ?\) Explain what is unrealistic about the other values.

The mean and standard deviation of a sample may change if data are rescaled (for instance, temperature changed from Fahrenheit to Celsius). For a sample with mean \(\bar{x}\), adding a constant \(c\) to each observation changes the mean to \(\bar{x}+c,\) and the standard deviation \(s\) is unchanged. Multiplying each observation by \(c>0\) changes the mean to \(c \bar{x}\) and the standard deviation to \(c s\) a. Scores on a difficult exam have a mean of 57 and a standard deviation of \(20 .\) The teacher boosts all the scores by 20 points before awarding grades. Report the mean and standard deviation of the boosted scores. Explain which rule you used and identify \(c .\) b. Suppose that annual income for some group has a mean of $$\$ 39,000$$ and a standard deviation of $$\$ 15,000$$. Values are converted to British pounds for presentation to a British audience. If one British pound equals $$\$ 2.00,$$ report the mean and standard deviation in British currency. Explain which rule above you used and identify \(c\). c. Adding a constant and/or multiplying by a constant is called a linear transformation of the data. Do linear transformations change the shape of the distribution? Explain your reasoning.

A study reported that in 2007 the mean and median net worth of American families were \(\$ 556,300\) and \(\$ 120,300,\) respectively. a. Is the distribution of net worth for these families likely to be symmetric, skewed to the right, or skewed to the left? Explain. b. During the Great Recession of 2008 , many Americans lost wealth due to the large decline in values of assets such as homes and retirement savings. In \(2009,\) mean and median net worth were reported as \(\$ 434,782\) and \(\$ 91,304\). Why do you think the difference in decline from 2007 to 2009 was larger for the mean than the median?

The table summarizes responses of 4383 subjects in a recent General Social Survey to the question, "Within the past 12 months, how many people have you known personally that were victims of homicide?" $$\begin{array}{cc}\hline \begin{array}{l} \text { Number of People You Have Known } \\ \text { Who Were Victims of Homicide }\end{array} \\\\\hline \text { Number of Victims } & \text { Frequency } \\\\\hline 0& 3944 \\\1 & 279 \\\2 & 97 \\ 3 & 40 \\\4 \text { or more } & 23 \\ \text { Total } & \mathbf{4 3 8 3} \\ \hline\end{array}$$ a. To find the mean, it is necessary to give a score to the \(" 4\) or more" category. Find it, using the score \(4.5 .\) (In practice, you might try a few different scores, such as \(4,\) \(4.5,5,6,\) to make sure the resulting mean is not highly sensitive to that choice.) b. Find the median. Note that the "4 or more" category is not problematic for it. c. If 1744 observations shift from 0 to 4 or more, how do the mean and median change? d. Why is the median the same for parts \(\mathrm{b}\) and \(\mathrm{c}\), even though the data are so different?

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.