Statistics for Managerial Decisions

STATISTICS FOR
MANAGERIAL
DECISIONS
STUDENT ID:
[Pick the date]

Question 1
(a) Quarterly opening prices of RMD and FPH stocks
RMD FPH
January April July October
2009 2.63 2.53 2.52 2.58
2010 2.93 3.48 3.61 3.43
2011 3.41 2.91 2.91 2.85
2012 2.49 3.00 3.06 3.89
2013 3.96 4.42 4.90 5.70
2014 5.31 4.81 5.40 5.63
2015 6.91 9.42 7.30 7.30
2016 7.40 7.52 8.41 8.48
2017 8.59 9.39 10.07 9.76
2018 10.89 12.47 14.18 15.91
ResMedInc
January April July October
2009 2.72 2.55 2.35 2.63
2010 2.76 2.54 2.57 2.28
2011 2.33 2.33 2.13 1.99
2012 1.86 1.75 1.52 1.83
2013 1.99 2.11 2.89 3.22
2014 3.59 3.98 4.43 4.65
2015 5.85 6.42 6.09 6.47
2016 8.36 8.93 9.65 9.51
2017 8.19 8.91 10.89 11.72
2018 12.83 12.28 13.75 13.71
Fisher andPaykel Healthcare
Stem and leaf diagram
(b) RMD histogram and FPH polygon
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(c) ASX listed stock’s market caps for Dec 31, 2018
(d) The objective is to highlight the stock which would be preferred if an investment is to be
made in either of the stocks. The empirical performance of the two stocks would be
considered with regards to both risk and return so as to provide a holistic picture in relation
with past performance.
In order to measure, the associated risk, the 3 year returns beta has been obtained from Yahoo
Finance as 0.72 (RMD) and 1.21 (FPH). It is apparent that the associated risk is higher for
FPH but typically higher risk leads to higher returns.
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The returns considering the current price and the price three years ago for the two stocks
under consideration have been computed as illustrated below.
It is evident that RMD stock not only has given superior returns over the period under
consideration but also has lower risk which makes it a preferred bet ahead of FPH.
Question 2
(a) Weekly rent mean, median, first quartile (Q1) and third quartile (Q3)
(b) Weekly rent range, standard deviation and mean absolute deviation
(c) Box whisker plot
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