Problems

1. Use the data in Stock.xlsx to construct histograms for monthly returns on GE and Intel.

2. Use the data in Historicalinvest.xlsx to create histograms for annual returns on stocks and bonds. Then compare the annual returns on these stocks and bonds.

3. You are given (in the file Deming.xlsx) the measured diameter (in inches) for 500 rods produced by Rodco, as reported by the production foreman. A rod is considered acceptable if it is at least 1 inch in diameter. In the past, the diameter of the rods produced by Rodco has followed a symmetric histogram.

   • Construct a histogram of these measurements.

   • Comment on any unusual aspects of the histogram.

   Can you guess what might have caused any unusual aspects of the histogram? (Hint: One of quality-guru Deming’s 14 points is to “Drive Out Fear.”)