Discuss savings rate-tax

Question

Assignment:

Q1:It contains the yields for a money market account, a one-year certificate of deposit (CD), and a five-year CD for 23 banks in the metropolitan New York area, as of May 28, 2009. For each type of account:

Money Market	One-Year CD	Five-Year CD
0.60	1.00	1.85
1.75	2.00	3.30
0.01	0.25	1.50
1.00	2.00	3.10
0.75	1.50	3.25
1.25	2.30	3.70
1.20	2.05	3.00
0.50	1.75	3.00
2.00	1.65	2.80
1.75	2.25	2.50
2.12	1.35	3.50
1.90	2.20	3.66
1.20	2.10	3.30
0.20	2.00	1.70
0.20	2.00	1.70
0.25	1.75	3.30
0.20	2.00	1.70
0.25	1.75	3.00
0.20	2.00	1.70
0.60	1.20	1.65
2.00	2.24	3.25
2.02	0.75	1.00
0.02	0.85	1.16

a. Compute the first quartile (Q1), the third quartile (Q3), and the interquartile range.

b. List the five -number summary.

c. Construct a boxplot and describe the shape.

Q2: The file Tax contains the quarterly sales tax receipts (in thousands of dollars ) submitted to the comptroller of the Village of Fair Lake for the period ending March 2009 by all 50 businesses established in the locale:

10.3 11.1 9.6 9.0 14.5
13.0 6.7 11.0 8.4 10.3
8.0 11.8 8.7 10.6 9.5
11.1 10.2 11.1 9.9 9.8
11.6 15.1 12.5 6.5 7.5
10.0 12.9 9.2 10.0 12.8
12.5 9.3 10.4 12.7 10.5
9.3 11.5 10.7 11.6 7.8
10.5 7.6 10.1 8.9 8.6

Sales Taxes ($000)
10.3
11.1
9.6
9.0
14.5
13.0
6.7
11.0
8.4
10.3
13.0
11.2
7.3
5.3
12.5
8.0
11.8
8.7
10.6
9.5
11.1
10.2
11.1
9.9
9.8
11.6
15.1
12.5
6.5
7.5
10.0
12.9
9.2
10.0
12.8
12.5
9.3
10.4
12.7
10.5
9.3
11.5
10.7
11.6
7.8
10.5
7.6
10.1
8.9
8.6

a. Compute the mean, variance, and standard deviation for this population

b. What percentage of these businesses have quarterly sales tax receipts within + 1, + 2, or + 3
standard deviations of the mean?

c. Compare your findings with what would be expected on the basis of the empirical rule. Are you surprised at the results in (b).

Q3: College football players trying out for the NFL are given the Wonderlic standardized intelligence test. The file Wonderlic contains the average Wonderlic score of football players trying out for the NFL and the graduation rate for football players at selected schools.

School	Wonderlic	Graduation%
Stanford	28.8	85
Purdue	25.3	63
California	25.2	48
UCLA	24.0	55
Oregon	23.5	68
Wisconsin	23.2	56
Iowa	23.0	58
Oregon State	22.8	44
Nebraska	22.6	63
Notre Dame	22.5	77
Boston College	22.0	78
Colorado	21.8	43
Michigan	21.7	57
Virginia	21.5	75
Texas A & M	21.0	50
Florida	20.8	42
Ohio State	20.8	52
Penn State	20.7	74
Virginia Tech	20.7	58
Southern California	20.3	58
West Virginia	20.3	46
Arizona State	20.2	44
Kansas State	19.8	61
Georgia	19.8	53
Texas	19.7	34
North Carolina State	19.6	42
Florida State	19.4	49
Oklahoma	19.0	40
North Carolina	18.9	53
Arkansas	18.6	35
Auburn	18.5	48
LSU	18.5	42
Clemson	18.3	51
Alabama	18.2	49
South Carolina	17.9	54
Tennessee	17.7	38
Michigan State	16.6	41
Miami (Florida)	16.3	57

a. Compute the covariance

b. Compute the coefficient of correlation

c. Based on (a) and (b), what conclusions can you reach about the relationship between the average Wonderlic score and graduation rate?

Q4: The file Compensation includes the total compensation includes the total compensation (in $) of CEOs of the large public companies in 2008.

a. Compute the mean, median, first quartile, and third quartile.

b. Compute the range, interquartile range, variance, standard deviation, and coefficient of variation.

c. Construct a boxplot. Are the data skewed? Is so, how?

d. Based on the results of (a) through (c), what conclusions can you reach concerning the total compensation (in $millions) of CEOs?

e. Compute the correlation coefficient between compensation and the amount of bonus.

f. Compute the correlation coefficient between compensation and the change in stock price in 2008.

g. What conclusions can you reach from the results of (e) and (f)?

Company	Bonus	Compensation	Stock Price
3M	2,844,074	12,182,410	-30
Abache	500,000	37,226,369	-30
Abbott Laboratories	4,200,000	25,104,085	-2
Abercrombie & Fitch	6,482,400	22,909,523	-77
Adobe Systems	1,257,812	16,364,103	-45
Advanced Micro Devices	0	5,269,400	-71
AES	4,063,800	7,201,709	-61
Affiliated Computer	1,127,025	7,925,490	-6
Aflac	0	10,783,232	-26
Agilent Technologies	1,305,563	5,044,614	-40
AK Steel Holding	4,506,810	9,483,835	-80
Akamai Technologies	315,000	4,181,541	-56
Alcoa	1,884,000	9,705,899	-68
Allegheny Energy	1,230,000	11,156,639	-46
Allegheny Technologies	5,514,208	11,522,301	-70
Allergan	1,212,100	13,549,965	-37
Allstate	736,261	7,012,215	-35
Altera	1,252,230	4,105,257	-13
Altria Group	2,800,000	11,620,158	-27
Amazon.com	0	1,281,840	-45
Ameren	771,656	3,887,340	-35
American Electric Power	1,654,071	9,687,124	-25
American Express	6,112,500	42,752,461	-64
American Tower	1,085,000	5,303,833	-31
Ameriprise Financial	1,386,000	11,970,932	-57
AmerisourceBergen	2,719,537	5,396,800	-16
Amgen	3,875,000	13,780,489	24
Anadarko Petroleum	3,416,491	22,191,836	-41
Analog Devices	1,812,030	6,458,259	-33
Aon	1,417,600	10,620,114	-3
Apartment Investment & Mgmt	1,700,000	4,900,000	-66
Apple	0	1	-17
Applied Materials	650,000	9,731,156	-39
Assurant	1,638,750	5,410,194	-54
AT&T	0	15,020,059	-28
AutoNation	0	2,579,090	-37
AvalonBay Communities	991,003	6,040,361	-31
Avery Dennison	1,325,650	6,441,816	-38
Avon Products	1,689,428	19,467,789	-38
Baker Hughes	6,383,399	13,163,000	-60
Ball	2,101,656	4,738,176	-7
Bank of America	0	9,003,467	-63
Bank of New York Mellon	0	11,962,579	-40
Baxter International	2,708,940	13,913,884	6
BB&T	1,504,303	4,690,974	-4
Bemis	334,453	2,925,449	-11
Big lots	2,353,560	9,862,262	-23
BIOGEN IDEC	2,400,000	11,227,634	-16
Black & Decker	1,875,000	16,785,001	-38
Boeing	6,089,625	14,765,410	-50
Boston Properties	1,975,000	8,863,187	-38
Boston Scientific	885,664	2,095,735	-33
Bristol-Myers Squibb	4,475,000	21,808,333	-6
Broadcom	615,000	6,606,128	-35
Burlington Northern Santa Fe	1,679,480	14,621,963	-8
C.H. Robinson Worldwide	1,314,197	5,767,589	3
Cabot Oil	776,250	5,035,255	-35
Cameron International	902,981	4,146,728	-57
Capital One Financial	0	68,344	-30
Carnival	0	4,756,889	-51
CB Richard Ellis Group	0	3,347,732	-80
CenterPoint Energy	1,578,750	4,874,174	-23
Century Tel	864,500	7,594,565	-30
Cephalon	1,779,800	14,642,550	7
CF Industries	1,800,000	5,581,887	-55
Charles Schwab	4,477,200	15,390,840	-36
Chesapeake Energy	76,951,000	112,464,517	-58
Chevron	3,220,000	13,790,794	-18
Chubb	3,357,800	12,557,105	-4
Ciena	568,750	5,271,736	-80
CIGNA	6,650,000	11,416,643	-69
Cincinnati Financial	426,060	1,626,521	-23
CIT Group	0	4,227,001	-80
Citigroup	0	38,237,437	-76
Citrix Systems	479,664	4,288,948	-38
CME Group	642,600	4,059,697	-69
CMS Energy	971,850	4,224,673	-40
Coca-Cola	4,500,000	19,628,585	-24
Coca-Cola Enterprises	147,344	11,927,626	-53
CognlzantTechnology Solutions	260,387	6,513,330	-47
Colgate-Palmolive	3,162,500	10,955,508	-10
Comerica	615,625	4,108,245	-51
ConocoPhillips	1,417,500	14,626,455	-40
CONSOL Energy	1,832,400	11,967,371	-60
Consolidated Edison	1,066,100	5,505,817	-16
Convergys	0	3,072,968	-61
Cooper Industries	2,500,000	14,555,553	-43
Corncast	8,275,231	24,683,315	-7
Corning	301,584	7,543	-60
Coventry Health Care	0	11,018,797	-75
Covidlen	2,244,672	4,059,555	35
CR Bard	1,377,500	10,234,047	-10
CSX	2,032,000	7,301,875	-29
Cummins	5,390,800	9,198,970	-57
CVS Caremark	4,568,503	17,434,647	-27
Danaher	3,267,250	4,947,475	-35
Dean Foods	2,350,900	9,807,252	-31
Deere	6,930,421	16,204,906	-49
Denbury Resources	384,556	2,292,432	-63
Dentsply International	902,200	4,742,814	-37
Diamond Offshore Drilling	555,000	2,433,394	-56
DirecTV Group	3,500,000	6,179,576	-1
Discover Financial Services	1,425,000	2,431,100	-40
Dominion Resources	6,735,000	11,553,113	-22
Donnelley (R.R.) & Sons	0	5,552,551	-62
Dover	1,763,020	3,147,327	-27
Dow Chemical	0	12,780,614	-59
DTE Energy	1,500,000	7,010,409	-14
Duke Energy	0	524,589	-22
Dun & Bradstreet	1,093,219	5,710,467	-12
DuPont	1,732,000	10,213,441	-40
Dynegy	550,000	4,091,573	-72
Eastman Chemical	925,000	4,386,793	-69
Eaton	3,987,500	8,744,489	-47
eBay	500,000	22,462,893	-58
Ecolab	1,397,000	5,703,640	-30
Edison International	1,050,000	5,795,863	-38
EI Paso	593,220	6,237,410	-54
Eli Lilly	2,709,053	10,635,285	-21
EMC	1,388,628	13,874,262	-25
Entergy	2,169,720	8,153,159	-28
EQT	2,800,000	5,316,748	-36
Equifax	1,813,630	7,233,331	-27
Excel Energy	0	4,925,512	-14
Exelon	1,835,166	12,205,435	-30
Expeditors Int. of Washington	5,815,769	6,030,115	-25
Express Scripts	2,450,500	13,805,168	-25
Exxon Mobil	4,000,000	23,920,826	-13
Eyulty Residential	875,000	4,088,079	-14
Family Dollar Store	533,170	4,118,623	-10
Fastenal	1,223,395	17,108,895	-12
Federated Investors	2,240,000	4,029,656	-54
Fidelity National Inf. Services	2,286,389	10,101,473	20
Fifth Third Bancorp	0	2,982,059	-66
First Horizon National	0	1,738,276	-39
FirstEnergy	2,305,403	12,691,500	-31
Fiserv	1,092,000	5,385,294	-34
Flowserve	5,032,532	10,210,314	-46
Fluor	6,873,200	14,419,815	-38
Ford Motor	0	17,688,241	-66
Fortune Brands	0	8,304,594	-41
FPLGroup	2,400,000	12,009,943	-23
Franklin Resources	2,400,000	10,470,243	-30
Frontier Communications	878,611	7,063,644	-24
FUR Systems	2,095,500	6,145,391	-2
Gannett	875,000	3,135,469	-78
Gap	3,016,397	5,350,831	-40
General Dynamics	4,500,000	17,962,579	-34
General Electric	0	5,717,469	-54
General Motors	0	17,876,112	-87
Genuine Parts	866,716	3,015,123	-15
Genworth Financial	0	3,609,010	-88
Genzyme	1,962,725	12,699,301	-11
Gilead Sciences	1,651,650	12,553,943	11
Goldman Sachs	0	42,946,801	-65
Goodrich	2,173,616	9,795,475	-47
Goodyear Tire & Rubber	4,600,000	10,042,273	-79
Google	0	508,764	-56
Grainger (W.W.)	631,125	7,211,882	-8
Halliburton	8,120,000	15,448,714	-51
Harley Davidson	450,339	6,048,027	-62
Hartford Financial	0	7,283,943	-80
Hasbro	2,500,000	7,340,048	15
HCP	2,000,000	9,006,706	-15
Health Care REIT	866,821	2,721,257	0
Hershey	1,128,400	6,217,993	-9
Hess	3,500,000	21,346,460	-47
Hewlett-Packard	23,931,882	34,027,934	-25
Home Depot	0	9,244,533	-27
Honeywell*	17,500,000	28,731,628	-45
Hospira	976,740	6,100,555	-37
Host Hotels & Resorts	467,625	2,027,435	-53
Hudson City Bancorp	2,295,000	7,912,473	9
Humana	0	5,185,414	-50
Huntington Bancshares	0	1,926,717	-44
IBM	5,500,000	20,965,883	-21
Illinois Tool Works	1,586,200	9,446,638	-33
IMS Health	567,500	5,937,776	-34
Ingersoll-Rand	1,425,000	11,294,594	-62
Integrys Energy Group	684,145	5,446,712	-12
Intel	3,873,300	12,407,800	-46
Intercontinental Exchange	1,372,000	6,049,533	-57
International Flavors & Fragrances	2,345,500	6,260,845	-37
International Game Technology	881,678	5,205,082	-59
International Paper	1,575,000	10,261,383	-62
Intuitive Surgical	390,000	9,557,798	-61
Invesco	3,655,000	10,531,768	-53
Iron Mountain	811,738	5,206,560	-33
ITT	2,534,025	10,312,616	-29
J.C. Penney	1,406,250	14,902,021	-64
Janus Capital Group	3,386,907	7,962,586	-76
Johnson & Johnson	8,972,360	21,125,456	-11
JP Morgan Chase	0	35,716,101	-25
Juniper Networks	1,844,000	36,116,614	-47
KB Home	2,750,000	7,320,482	-42
Kellogg	2,601,300	10,031,079	-11
KeyCorp	0	4,454,142	-62
Kimberly	943,247	8,899,403	-21
Kimco Realty	580,000	2,699,207	-47
Kohl's	0	11,638,049	-19
Kraft Foods	4,070,000	15,974,865	-15
L-3 Communications	2,750,000	12,414,890	-29
lABIA	0	13,773,633	-78
Laboratory Corp. of America	765,674	8,189,729	-15
Leggett & Platt David Haffner	390,600	4,158,258	-8
Lennar	0	1,058,294	-54
Leucadia National	22,030	1,149,060	-58
Lexmark Intemational	335,880	3,406,554	-23
Life Technologies	2,050,000	11,203,570	-50
limited Brands	1,523,192	6,660,326	-57
Lincoln National	800,000	9,059,351	-66
Lockheed Martin	12,817,750	22,863,062	-19
Loews	2,500,000	5,515,088	-44
Lowe's	1,500,763	11,292,779	-27
LSI	850,000	6,209,579	-38
M&T Bank	0	710,128	-27
Macy's	900,000	14,824,288	-67
Manitowoc	1,400,000	3,520,283	-82
Marathon Oil	3,783,250	8,344,077	-54
Marriott	904,700	8,314,136	-38
Marsh & McLennan	3,000,000	24,801,936	-6
Marshall & llsley	0	3,372,313	-45
Masco	0	5,145,619	-46
Massey Energy	6,322,447	19,689,576	-61
MasterCard	2,288,833	9,369,482	-33
Mattei	0	8,638,671	-11
McAfee	1,000,000	15,992,388	-8
McDonald's	4,600,000	13,596,919	9
McGraw-Hili	0	8,245,136	-46
MeadWestvaco	0	5,675,606	-63
MedcoHealth Solutions	3,000,000	14,312,368	-17
Merck Richard Clark	2,244,510	17,320,938	-45
MetLife	3,250,000	12,412,702	-42
MiIIlpore	655,666	5,246,735	-30
Molson Coors Brewing	824,277	5,558,499	-8
Moody's	305,000	3,065,091	-43
Morgan Stanley	0	1,235,097	-71
Motorola	0	104,445,529	-72
Motorola	0	24,211,840	-72
Murphy Oil	2,000,000	83,873,411	-47
Mylan Laboratories	3,750,000	11,615,858	-30
Nasdaq OMX Group	3,800,000	8,407,240	-50
National Oilwell Varco	1,825,960	9,759,152	-67
New York Times	597,500	4,415,143	-57
Newell Rubbermaid	0	5,247,747	60
Newmont Mining	1,894,375	10,309,952	-16
Nicor	931,466	2,475,648	-14
NiSource	0	2,951,670	-39
Noble Energy	4,354,359	11,530,182	-37
Nordstrom	0	1,873,717	-66
Norfolk Southern	1,759,400	12,025,257	-5
Northeast Utilities	3,257,929	6,252,160	-21
Northern Trust	0	5,172,346	-31
Northrop Grumman	2,775,500	19,258,391	-41
Novell	2,000,000	6,884,359	-38
Novellus Systems	0	928,769	-55
Nucor	2,160,000	5,043,780	-19
NVIDIA	0	3,699,672	-69
NYSE Euronext	2,000,000	9,175,792	-68
Occidental Petroleum	3,630,000	30,401,622	-21
Office Depot	0	6,288,700	-78
Omnicom Group	1,750,000	6,726,241	-42
O'Reilly Automotive	1,050,000	2,660,128	-5
Owens-Illinois	559,913	5,768,438	-45
Paccar	0	10,463,593	-46
Pactiv	1,050,000	6,081,150	-7
Peabody Energy	2,069,375	7,479,721	-63
People's United Financial	1,441,357	3,223,286	4
Pepco Holdings	968,400	4,243,725	-36
Pepsi Bottling Group	840,000	8,818,761	-43
PepsiCo	2,600,000	14,917,701	-27
PerkinElmer	2,757,380	14,917,701	-27
Pfizer	3,000,000	6,629,955	-48
PG&E	1,285,002	8,675,714	-6
Philip Morris	9,450,000	14,788,302	-17
Pitney-Bowes	2,109,000	3,183,890	-19
Plum Creek Timber	963,630	5,115,280	-30
PNC Financial Services Group	0	8,549,098	-22
PPG Industries	1,750,000	7,353,617	-37
PPL	0	5,614,771	-39
Praxalr	2,500,000	4,304,806	-21
Principal Financial Group	0	8,045,581	-32
Progress Energy	929,000	5,095,272	-13
Progressive	0	8,379,982	-22
ProLogis	420,000	4,821,586	-66
Prudential Financial	3,300,000	16,302,184	-66
Public Service Enterprise	1,000,000	7,448,065	-39
Public Storage	16,000,000	16,961,743	12
Pulte Homes	842,333	5,849,160	5
QUALCOMM	2,909,000	18,567,015	10
Questar	1,166,667	5,846,648	-39
Qwest Communications Int.	2,250,000	11,319,226	-44
RadioShack	1,210,261	5,466,349	-27
Range Resources	945,000	7,354,966	-33
Regions Financial	0	3,760,128	-64
Republic Services	3,108,000	10,621,637	-19
Reynolds American	5,186,075	8,826,108	-35
Robert Half International	5,708,900	6,753,920	-21
Rowan Companies	364,250	4,553,809	-59
Ryder System	1,067,648	4,520,580	-16
Safeway	399,944	11,037,041	-26
SanDisk	0	5,016,945	-73
Scana	653,905	6,729,295	-11
Schlumberger	1,125,000	13,699,075	-56
Sealed Air	0	7,871,566	-34
Sears Holdings	0	1,905,893	-63
Sempra Energy	2,530,000	9,106,975	-29
Sherwin Williams	0	5,835,555	6
Sigma-Aldrich	356,625	3,983,596	-22
Simon Property Group	810,000	5,440,951	-36
SLM	0	8,308,135	-56
Smith International	1,341,600	3,509,405	-69
Snap On	900,000	5,159,383	-9
Southern	567,878	8,132,120	0
Southwest Airlines	462,000	1,586,182	-29
Southwestern Energy	3,478,750	7,084,536	4
Spectra Energy	1,184,117	4,756,773	-36
Sprint Nextel	2,651,388	14,233,370	-86
St. Jude Medical	1,365,413	8,848,943	-14
Stanley Works	1,213,210	4,637,760	-20
Starbucks	0	9,740,471	-43
Starwood Hotels & Resorts	1,365,000	4,808,961	-57
State Street	0	16,733,614	-51
Stryker	617,280	2,118,059	-46
Sunoco	794,007	12,062,024	-38
Suntrust Banks	0	8,042,275	-50
T, Rowe Price Group	3,850,000	5,702,770	-41
Target	447,680	13,157,482	-43
TECO Energy	574,928	3,879,974	-25
Tellabs	200,000	2,648,008	-34
Tenet Healthcare	2,288,750	9,741,246	-77
Teradata	315,000	4,635,908	-46
Teradyne	299,725	2,882,343	-59
Tesoro	0	8,825,605	-72
Texas Instruments	1,564,853	9,623,590	-53
Textron	617,980	9,833,127	-77
The Washington Post	400,000	811,960	-52
Thermo Fisher Scientific	1,865,643	18,705,572	-41
Tiffany & Co.	0	4,222	-47
Time Warner	7,600,000	21,456,267	-39
Time Warner Cable	6,434,270	14,419	-22
Titanium Metals	0	1,037,820	-66
Torchrnark	1,200,000	4,234,259	-25
Total System Services	206,943	3,401,016	-49
Travelers Companies	5,000,000	16,821,125	-14
U.S. Bancorp	0	6,765,630	-17
Union Pacific	3,000,000	11,777,247	-23
United Parcel Service	176,944	5,168,664	-20
United States Steel	3,250,000	11,130,689	-69
United Technologies	4,294,844	22,032,175	-28
Unum Group	2,268,750	10,735,978	-21
V.F	760,000	7,490,341	-12
Valero Energy	705,510	6,638,187	-69
Ventas	1,513,260	7,579,745	-22
Verisign	0	4,492,699	-49
Verizon Communications	3,740,625	19,912,389	-18
Viacom	7,885,000	27,920,484	-56
Vornado Realty Trust	3,800	11,248,978	-28
Vulcan Materials	0	4,488,714	-9
Wal-Mart	5,824,000	7,932,485	-6
Walt Disney	13,945,493	51,072,580	-3
Waste Management	1,050,895	6,199,593	5
Waters	1,470,000	2,334,432	-54
Watson Pharmaceuticals	997,200	4,065,131	-2
WellPoint	73,810	8,653,599	-52
Wells Fargo	0	9,041,087	2
Western Union	1,105,700	2,190,000	-41
Weyerhaeuser	0	4,748,523	-57
Whirlpool	420,000	6,107,101	-48
Whole Foods	33,830	33,831	-57
Windstream	1,787,554	6,393,068	-23
Wisconsin Energy	2,328,579	8,296,627	-12
Wyeth	2,750,000	21,182,603	-13
Wyndham Worldwide	0	6,298,817	-72
Wynn Resorts	4,062,500	8,454,088	-62
Xerox	990,000	11,980,828	-50
XL Capital	3,500,000	7,476,333	-92
XTO Energy	5,250,000	21,898,597	-31
Yum Brands	4,057,200	17,392,472	-19
Zimmer Holdings	691,350	6,164,635	-39
Zions Bancorp	0	1,465,589	-45