Supplementary Exercises 67
c. What percentage of freshmen select one of the five most popular majors?
d. What is the most popular major for incoming freshmen? What percentage of freshmen
select this major?
40. In 2008 General Motors had a 23% share of the automobile industry with sales coming
from eight divisions: Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab, and Sat-
urn (Forbes, December 22, 2008). The data set GMSales shows the sales for a sample of
200 General Motors vehicles. The division for the vehicle is provided for each sale.
a. Show the frequency distribution and the percent frequency distribution of sales by di-
vision for General Motors.
b. Show a bar chart of the percent frequency distribution.
c. Which General Motors division was the company leader in sales? What was the per-
centage of sales for this division? Was this General Motors’ most important division?
Explain.
d. Due to the ongoing recession, high gasoline prices, and the decline in automobile
sales, General Motors was facing bankruptcy in 2009. Expectations were that General
Motors could not continue to operate all eight divisions. Based on the percentage of
sales, which of the eight divisions looked to be the best candidates for General Motors
to discontinue? Which divisions looked to be the least likely candidates for General
Motors to discontinue?
41. Dividend yield is the annual dividend paid by a company expressed as a percentage of
the price of the stock (Dividend/Stock Price ⫻ 100).The dividend yield for the Dow Jones
Industrial Average companies is shown in Table 2.15 (The Wall Street Journal, June 8,
2009).
a. Construct a frequency distribution and percent frequency distribution.
b. Construct a histogram.
c. Comment on the shape of the distribution.
d. What do the tabular and graphical summaries tell about the dividend yields among the
Dow Jones Industrial Average companies?
e. What company has the highest dividend yield? If the stock for this company currently
sells for $20 per share and you purchase 500 shares, how much dividend income will
this investment generate in one year?
42. Approximately 1.5 million high school students take the SAT test each year and nearly 80%
of the college and universities without open admissions policies use SAT scores in mak-
ing admission decisions (College Board, March 2009). The current version of the SAT
GMSales
file
EB
DYield
Dividend Dividend
Company Yield % Company Yield %
3M 3.6 IBM 2.1
Alcoa 1.3 Intel 3.4
American Express 2.9 JP Morgan Chase 0.5
AT&T 6.6 Johnson & Johnson 3.6
Bank of America 0.4 Kraft Foods 4.4
Boeing 3.8 McDonald’s 3.4
Caterpillar 4.7 Merck 5.5
Chevron 3.9 Microsoft 2.5
Cisco Systems 0.0 Pfizer 4.2
Coca-Cola 3.3 Procter & Gamble 3.4
DuPont 5.8 Travelers 3.0
ExxonMobil 2.4 United Technologies 2.9
General Electric 9.2 Verizon 6.3
Hewlett-Packard 0.9 Walmart 2.2
Home Depot 3.9 Walt Disney 1.5
TABLE 2.15
DIVIDEND YIELD FOR DOW JONES INDUSTRIALAVERAGE COMPANIES
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