Assignment 2 for Statistics and Business Analytics

Assessment details for all students
Assessment item 2—Assignment 2
Due date: 6:00pm, Friday Week 10 ASSESSMENT
Weighting: 20%
2Format: Submit one file online as .doc, .docx, .rtf or .pdf
Assessment criteria
 This assignment must be typed, word-processed or clearly hand-written (but plots and graphs
must be done using EXCEL or equivalent software), and submitted online as a single file
through Moodle. Important note: The file size must not be over 100MB.
 Microsoft Excel allows students to cut and paste information easily into Microsoft Word
documents. Word also allows the use of Microsoft Equation Editor to produce all necessary
formulae (use of these are recommended).
 It is expected that Excel would be used to assist in statistical calculations for questions in this
assignment. Where Excel is used, use copy function, “Snipping tool” or similar to cut and paste
relevant parts of the spreadsheet to verify that you have done the work. (In that case there is no
need to write the equations.)
 For those questions where Excel is not used to do the computations, all formulae and working
must be included to obtain full marks.
 Only one file will be accepted in any of the formats mentioned above. No zipped file or any other
file extension will be accepted. Also, no submission as an email attachment will be accepted.
 There will be late submission penalty for submissions beyond the deadline unless prior approval
is obtained from the Unit Coordinator through the extension system in Moodle. Under no
circumstances any submission that is late beyond 14 days from the deadline of Friday of Week 10
will be marked, or get any score other than zero.
Assignment markers will be looking for answers which
 demonstrate the student’s ability to interpret and apply the statistical techniques in the
scenarios and
 use statistical techniques as decision making tools in the business environment.
Full marks will not be awarded to answers which simply demonstrate statistical procedures without
comment, interpretation or discussion (as directed in the questions).
Plagiarism
CQU values academic honesty. Consequently, plagiarism will not be tolerated in assessment items. This
assignment must be completed by each student individually.
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Question 1 4 Marks
Visit the Australian Stock Exchange website, www.asx.com.au and from “Prices and research” drop-
down menu, select “Company information”. Type in the ASX code “SYD” (Sydney Airport), and find out
details about the company. Also, type in the ASX code “ALX” (Atlas Arteria), and find out the details
about that company. Both these companies belong to industrials sector and within the industry group
transportation. Information available in the ASX website will be inadequate for your purpose, you will
need to search the internet for more information. Your task will be to get the opening prices of SYD and
ALX shares for every quarter from January 2009 to December 2018 (unadjusted prices). If you are
retrieving the monthly prices, read the values in the beginning of every Quarter (January, April, July,
October) for every year from 2009 to 2018 (Total 40 observations). To provide you with some guidance
as to what the unadjusted prices look like, two charts accompany this question. After you have researched
share prices and industrials sector (transportation group), answer the following questions:
(a) List all the quarterly opening price values in two tables, one for SYD and the other for ALX. Then
construct a stem-and-leaf display with one stem value in the middle, and SYD leaves on the right
side and ALX leaves on the left side. (Must use EXCEL or similar for the plot.) 1 mark
Sydney Airport (SYD) opening share price in Australian dollars in ASX
Year Quarter 1 Quarter 2 Quarter 3 Quarter 4
2009 2.40 1.82 2.23 2.80
2010 3.04 3.09 2.67 2.9
2011 2.99 3.03 3.1 3.2
2012 2.67 2.91 2.91 3.16
2013 3.38 3.28 3.39 3.96
2014 3.8 4.17 4.24 4.27
2015 4.71 5.24 5.13 5.96
2016 6.35 6.65 6.94 6.97
2017 5.99 6.72 7.07 7.11
2018 7.05 6.71 7.2 6.85
Atlas Arteria (ALX) opening share price in Australian dollars in ASX
Year Quarter 1 Quarter 2 Quarter 3 Quarter 4
2009 0.50 0.60 0.68 0.45
2010 0.51 0.93 0.92 1.54
2011 1.53 1.91 1.71 1.30
2012 1.34 1.66 1.51 1.42
2013 1.65 1.54 1.91 2.43
2014 2.72 2.89 3.23 2.84
2015 3.17 3.19 3.13 3.81
2016 4.03 4.71 5.10 4.95
2017 5.00 5.10 5.55 5.37
2018 6.29 5.78 6.43 6.99
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Stem and Leaf Plot with figure rounded to 1 decimal place
(b) Construct a relative frequency histogram for SYD and a frequency polygon for ALX on the same
graph with equal class widths, the first class being “$0 to less than $2”. Use two different colours
for SYD and ALX. Graph must be done in EXCEL or similar software. 1 mark
Table with frequencies
Class ALX SYD
0-<2 19 1
2-<4 9 20
4-<6 9 8
6-<8 3 11
0-2 2-4 4-6 6-8
0
5
10
15
20
25
Histogram and Frequency Polygon
SYD
ALX
Class Limit
Frequency
(c) Draw a bar chart of market capitals (or total assets) in 2018 (in million Australian dollars) of 6
companies listed in ASX that trade in industrials (transportation) with at least AUD100 million in
market capital. Graphing must be done in EXCEL or with similar software 1 mark
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Following are some 6 top companies in the ASX Transport sector with at least 100M AUD
ASX Code Company Name MARKET CAPITAL
SYD SYD Airport 19,040,000,000
QAN Qantas Airways 9,595,790,000
FLT Flight Centre Travel 4,702,910,000
AIZ Air New Zealand Foreign Exempt NZX 3,020,450,000
CTD Corp Travel Limited 1,891,220,000
SLK Sealink Travel Group 381,373,000
SYD
QAN
FLT
AIZ
CTD
SLK
- 5,00,00,00,000 10,00,00,00,000 15,00,00,00,000 20,00,00,00,000
MARKET CAPITAL BAR CHART
Market Capital (AUD)
ASX Code
(d) If one wishes to invest in SYD or ALX, what is the market recommendation (for example, from
Morningstar, Fatprophets, InvestSmart, etc.)? If you cannot find the information, what would be
your recommendation based on your research of these two companies (trend, P/E ratio, dividend
yield, debt and Beta)?
1 mark
According to the recent stastics,SYD has a total market capital of 18B with a dividend offer of
8.1 and a annual dividend yield of 0.20 (4.79%).The P/E ratio 45.53.It has a total debt to Equity
ratio of 12,642%.The dividend average growth rate is 13.72%.The Beta value is 0.62.
On the other hand ALX has a market capita of about 5.4 B and share price of 7.95 with a monthly
Beta of 0.52.The P/E ratio is N/A. The dividend is currently at 0.15 (3.77%).
The ALX seems to have a lower Beta value than SYD.However,the revenue projected by SYD is
currently 2.3B and seem to have a higher dividend yielding rate the ALX.I would therefore advise
one to invest in SYD.
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