Statistics For Management Decision.
Added on - 30 Oct 2019
Statistics For Management DecisionAssessment -2Student Id[Pick the date]
Question 1(a)Quarterly opening price values for the given companies are highlighted below:Stem and leaf plot is shown below:1
(b)Relative frequency histogram for CWN and frequency polygon for TAH is shown below:05101520253035Relative frequency histogram and Frequency PolygonOpening Quarterly PriceRelativefrequency(c)Bar chart of market capitals in 2016 of five companies listed in ASX is shown below:2
Village RoadshowTatts GroupStar Entertainment GroupAristocrat LeisureTasracing0123456Bar ChartMarket Capitals (Billion Australian Dollars)CompanyNAME(d)According to Morningstar, there is buy call for CWN while a sell call on TAH based onthe respective fair values which have been computed. For CWN, the estimated fair valueis higher than the current market price while it is the opposite for TAH.3
Based on my research also, I would prefer CWN over TAH at least for the near term and wouldtake a fresh call in TAH once the merger is completed and the synergies are reflected in thefinancials.Question 2The annual dividend per share for the given banks are as highlighted below:(a)Mean, median first quartile and third quartile of the annual dividends for the given banksare as highlighted below (Taylor & Cihon, 2004) .4
(b)Standard deviation, range and coefficient of variation of the annual dividends for thegiven banks are as highlighted below:(c)Box and whisker plot for the annual dividends of the given banks are shown below:CBANABANZWBC0.000.501.001.502.002.503.003.504.00Box - Whisker Plot(d)APRA has raised flag over the lax lending norms that the Australian banks have andwhich tend to give rise to higher credit risk. As a result, APRA has enhanced the capitaltargets which the banks need to meet, particularly in the form of a higher Tier 1 capital.This would require the bank to raise incremental capital going ahead and hence it would5