The Manager of Hudson Auto Repair Would Like to Get

question 49

Essay

The manager of Hudson Auto Repair would like to get a better picture of the distribution of costs for new parts used in the engine tune-up jobs done in the garage. A sample of 50 customer invoices for tune-ups has been taken and the costs of parts, rounded to the nearest dollar, are listed below. Develop a frequency distribution for these cost data. Use your own judgment to determine the number of classes and class width that provide a distribution that will be meaningful and helpful to the manager.
a. Develop a stem-and-leaf display showing both the rank order and shape of the data set.
b. Develop a stretched stem-and-leaf display using two stems for each leading digit(s).
c. Which display is better at revealing the natural grouping and variation in the data?

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Definitions:

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole; it indicates how much the asset's price is expected to move relative to market movements.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company seeks before pursuing a project or investment.

Capital-Budgeting

The process a business undertakes to evaluate potential major projects or investments, analyzing the prospective inflows and outflows to determine whether they meet a sufficient return on investment.