Get the answers you've been searching for with IDNLearn.com. Our Q&A platform offers detailed and trustworthy answers to ensure you have the information you need.

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were as follows: FC: −5 percent, 15 percent, 20 percent; MC: 8 percent, 8 percent, 20 percent. Calculate the mean return for each company.

Sagot :

Using the mean concept, it is found that:

  • The mean return for Florida Company is 10%.
  • The mean return for Minnesota Company is 12%.

The mean of a data-set is given by the sum of all observations divided by the number of observations.

For Florida Company(FC):

  • 3 returns, of -5%, 15% and 20%.

Thus, the mean is:

[tex]M = \frac{-5 + 15 + 20}{3} = \frac{30}{3} = 10[/tex]

The mean return for Florida Company is 10%.

For Minnesota Company(MC):

  • 3 returns, of 8%, 8% and 20%.

Thus, the mean is:

[tex]M = \frac{8 + 8 + 20}{3} = \frac{36}{3} = 12[/tex]

The mean return for Minnesota Company is 12%.

A similar problem is given at https://brainly.com/question/13451786