Each year Money magazine consultants compile a list of 50 blue-chip stocks. Thes

ID: 2959954 • Letter: E

Question

Each year Money magazine consultants compile a list of 50 blue-chip stocks.

These stocks are analyzed and suggestions are made about which ones to buy, which should be held, and which should be sold.

Let us assume that in one issue the consultants recommended 17 “buys” and published this buy list with the

Stock price stock price

Syntex 23.00 H.J. Heinz 40.75

Marion Merrell Dow 49.95 Rite Aid 56.00

Eli Lilly 47.46 GM E shares 44.75

Merck 39.26 Schering-Plough 53.25

Warner Lambert 42.63 British Telecom 29.75

Borden 57.44 Stanhome 49.00

McGraw-Hill 31.25 Glaxo Holdings 33.00

Abbott Labs 43.32 Hubbell B Shares 65.00

Bristol-Meyers 37.35

5.What is the standard deviation of the grouped data?

Given mean = 43.72

standard deviation =[(23-43.72)^2 + ... + (37.35-43.72)^2]/(17-1) = 10.98

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