Question

Morningstar publishes information on 1208 company stocks. A sample of 40 of these stocks is contained in the Excel Online file below. Construct a spreadsheet to answer the following questions. Open spreadsheet a. Develop a point estimate of the proportion of the stocks that receive Morningstar's highest rating of 5 Stars. (to 2 decimals) b. Develop a point estimate of the proportion of the Morningstar stocks that are rated low with respect to business risk. (to 2 decimals) c. Develop a point estimate of the proportion of the Morningstar stocks that are rated 3 Stars or less.

Answer 1

a.) .12

b.) .39

Step-by-step explanation:

Answer 2

Solution and Explanation:

Ameren Corp = 1 Star High = Point estimate of Propertion of the stocks that received morning highest rating of 5 stars = 5/40 = 0.125

Apple Inc = 2 Star Low = b) Number of stocks that received morning star rating low = 20. Point estimate of propertion of the morningstar stock that are rated low with respect to business risk = 20/40 = 0.50

At&T Inc = 5 Star Very Low = b) Number of stocks that received morning star rating low = 20. Point estimate of propertion of the morningstar stock that are rated low with respect to business risk = 20/40 = 0.50

Bank of New York Mellon Corp = 3 Star Very Low = c) Number of stocks that are rated 3 star or less =19 point estimate of propertion of the morningstar stocks that are rated 3 star or less = 19 /40 = 0.475

BlackRock Inc = 1 Star High

Buckeye Partners = 3 Star Very Low Cardinal Health Inc = 5 Star Very Low CenturyLink Inc = 1 Star Very Low Cintas Corporation = 5 Star High Rating Number of stocks Colgate-Palmolive Company = 3 Star Low 1 star 6 Corning Inc 2 Star High = 2 star 5 Darden Restaurants Inc = 5 Star Very Low 3 star 8 Discover Financial Services = 5 Star Average 4 star 6 eBay Inc = 5 Star Very Low = 5 star 15 Endo Health Solutions 1 Star High = Total 40 Fair Isaaac Corp = 4 Star High Fluor Corp = 5 Star Very Low Gentex Corporation = 5 Star Low Group 1 Automotive Inc = 3 Star Very Low Hess Corp = 1 Star Very Low Icon PLC = 5 Star High International Flavors & Fragrances = 1 Star High John Wiley & Sons, Inc. = 5 Star High Knight Transportation, Inc. = 4 Star Average Life Technologies corp = 3 Star High Marvell Technology Group, Ltd. = 4 Star High Methanex Corporation = 5 Star Average Mylan Inc = 5 Star High

New York Times Company = 3 Star Very Low OfficeMax Inc = 2 Star High Owens-Corning, Inc. = 3 Star Very Low Polaris Industries, Inc. = 4 Star Very Low Rio Tinto PLC = 2 Star High Sempra Energy = 2 Star Very Low Stifel Financial Corp. = 3 Star Very Low Texas Instruments, Inc. = 5 Star Very Low United Technologies Corp = 5 Star High Weight Watchers International, Inc. = 4 Star High WR Berkley Corp = 4 Star Low Yum Brands Inc = 3 Star Average