Computer Software Exercises
2-40. Suppose that cars with high consumer satisfaction ratings have a tendency to stay on dealers’ lots a shorter period of time. As an example, suppose the Honda Ridgeline had stayed on dealers’ lots an average of 24 days. The file titled Honda contains 50 lengths of stay on dealers’ lots for Ridgeline trucks.
Construct a stem and leaf display for these data.
2-41. The manager for a credit union has selected a random sample of 300 of the credit union’s credit card customers. The data are in a file called Capital. The manager is interested in graphically displaying the percentage of card holders of each gender.
a. Determine the appropriate type of graph to use in this application.
b. Construct the graph and interpret it.
2-42. A health insurance company selected a random sample of hospitals from each of four categories of hospitals: university related, religious related, community owned, and privately owned. At issue is the hospital charges associated with outpatient gall bladder surgery. The data are in the file called Hospitals.
a. Compute the average charge for each hospital category.
b. Construct a bar chart showing the averages by hospital category.
c. Discuss why a pie chart would not in this case be an appropriate graphical tool.
2-43. Amazon.com has become one of the success stories of the Internet age. Its growth can be seen by examining its increasing sales volume (in $billions)
and the net income/loss during Amazon’s
operations. A file titled Amazon contains these data for its first 17 years (source: 2011 Amazon Annual Report).
a. Construct one bar graph illustrating the relationship between sales and income for each separate year of Amazon’s existence.
b. Describe the type of relationship that exists between the years in business and Amazon’s sales volume.
c. Amazon’s sales rose sharply. However, its net income yielded losses, which increased during the first few years. In which year did this situation reverse itself and show improvement in the net income balance sheet?
2-44. In your capacity as assistant to the administrator at Freedom Hospital, you have been asked to develop a graphical presentation that focuses on the insurance carried by the geriatric patients at the hospital. The data file Patients contains data for a sample of geriatric patients. In developing your presentation, please do the following:
a. Construct a pie chart that shows the percentage of patients with each health insurance payer.
b. Develop a bar chart that shows total charges for patients by insurance payer.
c. Develop a stem and leaf diagram for the length-of- stay variable.
d. Develop a bar chart that shows the number of males and females by insurance carrier.
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Graphs, Charts, and Tables—Describing Your DataFIGURE 2.12 Excel 2016 Output Showing McGregor Line Charts for Sales and Profits
Excel 2016 Instructions 1. Open file: McGregor.xlsx.
2. Select the Sales (dollars) data to be graphed.
3. On the Insert tab, click the Line chart.
4. Click the Line with Markers option.
5. Use the Design tab in the Chart Tools to change the Chart Title, add the Axis Titles, and remove the grid lines.
6. Repeat Steps 2–5 for the Profit data.
FIGURE 2.13 Excel 2016 Line Chart of McGregor Profit and Sales Using a Single Vertical Axis
Excel 2016 Instructions 1. Open file: McGregor.xlsx.
2. Select the two variables, Sales (dollars) and Profit, to be graphed.
3. On the Insert tab, click the Line chart.
4. Click the Line with Markers option.
5. Use the Design tab in the Chart Tools to change the Chart Title, add the Axis Titles, remove the border, and remove the grid lines.
What the financial manager needed is one graph with both profits and sales. Figure 2.13 shows his first attempt. This is better, but there still is a problem: the sales and profit variables are of different magnitudes. This results in the profit line being flattened out to almost a straight line. The profit trend is hidden.
To overcome this problem, the financial manager needed to construct his graph using two scales, one for each variable. Figure 2.14 shows the improved graph. We can now clearly see that although sales are moving steadily higher, profits are headed downhill. For some rea- son, costs are rising faster than revenues, and this graph should motivate McGregor Vineyards to look into the problem.
Sales Increasing but Profits Decreasing
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2.3 Line Charts, Scatter Diagrams, and Pareto Charts
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Chapter 2 85HOW TO DO IT (Example 2-10)
Constructing Line Charts 1. Identify the time-series varia- ble of interest and determine the maximum value and the range of time periods covered in the data.
2. Construct the horizontal axis for the time periods using equal spacing between time periods.
Construct the vertical axis with a scale appropriate for the range of values of the time-series variable.
3. Plot the points on the graph and connect the points with straight lines.
EXAMPLE 2-10
Line Charts
Grogan Builders Grogan Builders produces mobile homes. The owners are planning to expand the manufacturing facilities. To do so requires additional financing. In prepara- tion for the meeting with the bankers, the owners have assembled data on total annual sales for the past ten years. These data are shown as follows:
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
1,426 1,678 2,591 2,105 2,744 3,068 2,755 3,689 4,003 3,997
The owners wish to present these data in a line chart to effectively show the company’s sales growth over the ten-year period. To construct the line chart, the following steps are used:
s t e p 1 Identify the time-series variable.
The time-series variable is units sold measured over ten years, with a maximum value of 4,003.
s t e p 2 Construct the horizontal and vertical axes.
The horizontal axis will have the ten time periods equally spaced. The vertical axis will start at zero and go to a value exceeding 4,003. We will use 4,500. The vertical axis will also be divided into 500-unit increments.
s t e p 3 Plot the data values on the graph and connect the points with straight lines.
0 500 4,000 4,500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1,000
1,500 2,000 2,500 3,000 3,500
Mobile Homes Sold
Year
Grogan Builders Annual Sales
TRY EXERCISE 2-46 (pg. 89) FIGURE 2.14 Excel 2016 Line Chart for Sales and Profits Using Two Vertical Axes and Different Scales
Excel 2016 Instructions 1. Open file: McGregor.xlsx.
2. Select data from the profit and sales column.
3. Click on Insert.
4. Click on the Line with Markers option.
5. Move graph to separate page.
6. Select Profit Line on graph and right click.
7. Click on the Format Data Series.
8. Click on Secondary Axis.
9. Use the Design tab of the Chart Tools to add titles as desired.
Profits and Sales moving in different directions.
Two vertical axes:
Left= Sales Right = Profits
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