1. You need to find the "typical" or mean annual dividend per share for large banks. You decide to sample six banks listed in the Standard and Poors 500. These banks and their trading symbol follow. | Bank | Symbol | Bank | Symbol | | AmSouth Bancorporation | ASO | National City Corp. | NCC | | Bank of America Corp. | BAC | Northern Trust Corp. | NTRS | | Bank of New York | BK | PNC Financial Services Group | PNC | | Bank One Corp. | ONE | Regions Financial Corp. | RGBK | | BB&T Corporation | BBT | SouthTrust Corp. | SOTR | | Charter One Financial | CF | SunTrust Banks | STI | | Comerica Inc. | CMA | Synovus Financial | SNV | | Fifth Third Bancorp | FITB | Union Planters | UPC | | FleetBoston Financial Corp. | FBF | U.S. Bancorp | USB | | Golden West Financial | GDW | Wachovia Corp. | WB | | Huntington Bancshares | HBAN | Washington Mutual, Inc. | WM | | KeyCorp | KEY | Wells Fargo & Co. (New) | WFC | | Mellon Financial Corp. | MEL | Zions Bancorp | ZION |
- After numbering the banks from 01 to 26, which banks would be included in a sample if the random numbers were 14, 08, 24, 25, 05, 44, 02, and 22? Go to the following website: http://www.quicken.com. Enter the trading symbol for each of the sampled banks and record the Annual Dividend per share (Annual div/shr). Determine the mean annual dividend per share for the sample of banks.
Which banks are selected if you use a systematic sample of every fourth bank starting with the random number 03?
2. There are several websites that will output the 30 stocks that make up the Dow Jones Industrial Average (DJIA). One site is www.dbc.com/dbcfiles/dowt.html . Compute the mean of the 30 stocks. - Use a random number table, such as Appendix E, to select a random sample of five companies that make up the DJIA. Compute the sample mean. Compare the sample mean to the population mean. What did you find? What did you expect to find?
- You should not expect to find that the mean of these 30 stocks is the same as the current DJIA. Go to the Dow Jones website at www.dj.com and read the reasons.
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