BUAD310
Page 1
Dr. Ansari
Stephen Bodziak 9947660785
Ryan Sanders 7164539701
Michael Vediner 5372733589
BUAD 310
Case 1, Fall 2009
Total 100 points – Due 10/14/09
In this case you will apply many of the statistical techniques learned in part 1 of BUAD310.
Instructions:
•
This exercise uses data from the file Forbes94.MTB, ForbesSample.MTB which you
can download from Blackboard.
•
The entire case should be typed in word document and clearly written and submitted
with supporting documents (MINITAB printouts). The printouts can be directly
copied and pasted into the word document.
•
The main part, done as a GROUP and worth 5 points for each question, should have
the complete name and USC ID of each team member.
•
The Executive Summary, worth 25 points, should be done INDIVIDUALLY; put the
name and USC ID on the top of this part of the assignment.
•
Both the Main part and Executive Summary (one for each person) should be printed
and put together and must be submitted on the due date.
GROUP ASSIGNMENT
:
Imagine that you are a future CEO of Trojan Worldwide and are interested in the average
Return_over_5years and average compensation of the 800 highest paid CEOs. You decide to
contact an expensive CEO placement service company. They provide you with a sample of 60
CEOs, their compensation and Return_over_5years. So you decide to study the information given
to you. Treat the 800 CEO information from the Forbes 94.MTB as the population and 60 randomly
selected CEO provided by the CEO placement service as the sample.
(The information is obtained from past published information in Forbes Magazine.)
Answer the following questions,
a.
Define the population and sample in this case. What is the parameter of interest? What are
the sample statistics?
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Dr. Ansari
The population is the top 800 CEOs ranked by compensation and the sample is the 60
randomly selected CEOs.
The parameter of interest is compensation.
The sample statistics
are the average compensation of the 60 CEOs, the median compensation of the 60 CEOs,
and the mode of the 60 CEOs.
b.
What type of variables are Return_over_5years and Compensation?
Return over 5 years is a discrete quantitative variable, and compensation is a continuous
quantitative variable.
c.
Who is the extreme outlier in the population in terms of Compensation? Why would you
consider this person extreme outlier? (give a
general
reason here)
Michael Eisner is the extreme outlier in the population in terms of compensation.
He is
considered an extreme outlier because the 75
th
percentile is only 3 times greater than the 25
th
percentile but Eisner is 80 times greater than the 75
th
percentile.
d.
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 '08
 Ansari
 Business, Normal Distribution, Standard Deviation, Mean, Dr. Ansari

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