Industry Group Variable example essay topic

INTRODUCTION There are two distinct variables that will be analyzed in this paper. These variables were taken from 20 industries and 140 sub industries in the United States. The first variable to be studied is the Industry group. The industry group variable consists of numbers from 1 to 20 to denote the industry group to which the particular sub industry belongs. The second variable to be studied is the Number of Production Workers. Along with the Number of Production workers, the number of employees are in units of 1000.

Through this paper, Statistical analyses such as methodology, tables, figures, formulas, and results will be presented. In summarizing these variables, descriptive measures and graphics will be used. METHODOLOGY Along with data from the 3rd edition of Business Statistics by Ken Black (2001) on page 11, supplementary data found on the CD-ROM enclosed was also used in this study. Frequency Distribution The raw data, on the industry group, from the financial database was organized into grouped data or a frequency distribution. Class intervals were made and the data was distributed according to what class interval it was in. After the frequency distribution was created a histogram, created in Microsoft Excel, was used to display the data graphically.

A pie chart was also used to show the percentage of the different industry groups. ABSTRACT A financial database, gathered from Moody's Handbook of Common Stocks was contained on a compact disc in the Black (2001). The database observations on eight variables for 100 companies. The variables include: the industry group, number of employees, number of production workers, value added by manufacturing, cost of materials, value of industry shipments, new capital expenditures, and end of year inventories. The objective of this paper is to study two variables, the industry group and the number of production workers of this financial database, and to perform the necessary computations and graphics needed to present these variables in the their best aspect. This paper presents the following statistical analyses: .

Summarization of the variables under study using graphical means (frequency distribution, histogram, etc. )... Summarization of the variables under study using descriptive statistics... Compare the descriptive measures of the various groups... Interpret and draw conclusion from each analysis. descriptive Measures Descriptive statistics such as central tendency, variation, shape and other measures were used to study the variables. The measures of central tendency are used to yield information about the center of a data set (Black, 2001, p. 38).

Three measures of central tendency were used: . Mode- the most frequent occurring number... Median- the middle value in an ordered array of numbers; if the array size is even, the median is the average of the two middle numbers... Sample mean- the average of a data set, . The symbols in the formula are the x-bar, which is the symbol for the sample mean, equal to the summation, represented by the capital Greek letter symbol, of all of the numbers divided by n, the sample size.

Variation describes the spread or dispersion of the data (Black, 2001, p. 46). Four dispersion measures will be used: . Range: R = H - L. Sample variance: . Sample standard deviation: .

Coefficient of variation: The measures of shape are used to describe the shape and the distribution of the data. The two measures of shape used were kurtosis and skewness. Kurtosis refers to the peaked ness of a distribution. It tells how high, thin, flat, wide, or normal in shape a distribution is. The skewness describes if a distribution is symmetrical or not. It tells if the distribution is positively skewed right (s 0), negatively skewed left (s.