The Golf Stock Price Study - Assignment Example

Module 5 – SLP Describing data statistically: Association, regression, and correlation June 21, 2009 RES600 – Introductory Data Analysis Your Instructor Name TUI University The Golf/Stock Price Study Eight variables are taken from the Golf/Stock Price Study are Handicap 04, Rank in Industry 04, Market Value, Sales, profitability, netmargin2003, Recent share price, and estimated earning per share 2004. Descriptive Statistics Table 1 shows the descriptive statistics of the golf/stock price study. The average CEOs golf handicap was 14.32 (SD = 5.58). About half of the CEOs golf handicap was below 14.10. The range of the CEOs golf handicap was 26.6 with minimum and maximum CEOs golf handicap was 2.4 and 29, respectively. The distribution of the CEOs golf handicap was approximately normally distributed. The average market value of the companies was 21321.46 (SD = 39064.46). About half of the company’s market value was below 9251.55. The minimum and maximum market value of the companies was 867.6 and 326528.8, respectively. The distribution of the market value was heavily right (positively) skewed. The average sales of the companies was 13277 (SD = 23920). About half of the company’s sales was below 6316. The minimum and maximum sales of the companies was 104 and 259681, respectively. The distribution of the sales was heavily right (positively) skewed. The average profitability of the companies was 1115 (SD = 2108). The distribution of the sales was heavily right (positively) skewed. The average net margin 2003 of the companies was about 10.22 (SD = 8.82). The distribution of net margin 2003 was heavily right (positively) skewed. The average recent share price of the companies was about 41 (SD = 21.52). The distribution of the recent share price was approximately normally distributed. The average estimated earnings per share 2004 of the companies was about 2.45 (SD = 1.71). The distribution of the estimated earnings per share 2004 was right (positively) skewed. Table 1: Descriptive statistics of the golf/stock price Statistics Handicap 04 Rank In Industry 04 Market Value Sales Profitability Net Margin 2003 Recent Share Price Estimated Earnings Per Share 2004 N Valid 231 483 488 486 428 438 499 482 Missing 488 236 231 233 291 281 220 237 Mean 14.32 12.94 21321.46 13277.49 1115.37 10.22 41.04 2.45 Median 14.10 11 9251.55 6316.00 478.00 7.95 39.00 2.11 Mode 11.9(a) 5 4021.5(a) 679.6(a) 109.8(a) 4.6(a) 32 1.36 Std. Deviation 5.584 8.863 39064.462 23919.942 2108.294 8.815 21.522 1.713 Skewness .328 .621 4.663 5.793 5.148 3.149 .713 1.597 Minimum 2.4 1 867.6 103.9 2.9 .0 3 .02 Maximum 29.0 37 326528.8 258681.0 20960.0 96.1 115 12.69 Percentiles 25 10.70 6 4935.75 2668.85 230.08 4.28 25.00 1.30 50 14.10 11 9251.55 6316.00 478.00 7.95 39.00 2.11 75 17.90 19 17795.58 14210.75 1029.90 14.40 53.00 3.13 a Multiple modes exist. The smallest value is shown Scatterplots Figure 1: Scatterplot of handicap 04 versus rank in industry 04 Figure 2: Scatterplot of handicap 04 versus market value Figure 3: Scatterplot of handicap 04 versus sales Figure 4: Scatterplot of handicap 04 versus profitability Figure 5: Scatterplot of handicap 04 versus net margin 2003 Figure 6: Scatterplot of handicap 04 versus recent share price Figure 7: Scatterplot of handicap 04 versus estimate earnings per share 2004 Figure 1 to 7 shows the scatterplots of Handicap 04 against performance measures Rank in Industry 04, Market Value, Sales, profitability, netmargin2003, Recent share price, and estimated earning per share 2004. None of scatterplot suggest any linear relationship between Handicap 04 against any performace measures. Correlation Matrix Table 2 shows the correlation matrix for the variables taken from from the Golf/Stock Price Study. Table 2 Correlations Matrix Handicap 04 Rank In Industry 04 Market Value Sales Profitability Net Margin 2003 Recent Share Price Estimated Earnings Per Share 2004 Handicap 04 Pearson Corr. 1 Sig. (2-tailed) N 231 Rank In Industry 04 Pearson Corr. -.060 1 Sig. (2-tailed) .426 N 180 483 Market Value Pearson Corr. -.060 -.282(**) 1 Sig. (2-tailed) .424 .000 N 182 483 488 Sales Pearson Corr. -.079 -.231(**) .664(**) 1 Sig. (2-tailed) .287 .000 .000 N 182 483 486 486 Profitability Pearson Corr. -.056 -.270(**) .873(**) .709(**) 1 Sig. (2-tailed) .473 .000 .000 .000 N 165 427 428 428 428 Net Margin 2003 Pearson Corr. .094 -.161(**) .129(**) -.136(**) .166(**) 1 Sig. (2-tailed) .223 .001 .008 .005 .001 N 171 423 425 425 421 438 Recent Share Price Pearson Corr. .032 -.294(**) .153(**) .079 .150(**) .160(**) 1 Sig. (2-tailed) .661 .000 .001 .081 .002 .001 N 186 479 484 482 424 438 499 Estimated Earnings Per Share 2004 Pearson Corr. .021 -.202(**) .069 .122(**) .173(**) .093 .812(**) 1 Sig. (2-tailed) .778 .000 .137 .008 .000 .052 .000 N 180 462 467 465 420 435 482 482 ** Correlation is significant at the 0.01 level (2-tailed). Rank in industry 04 shows statistically significant correlations with all variables. Handicap 04 does not show statistically significant correlations with any variables. The strongest positive correlation is between market value and profitability, r(426) = .87, p < .01. The weakest positive correlation is between handicap 04 and estimated earnings per share 2004, r(178) = .02, p = .78. The strongest negative correlations is between rank in industry 04 and recent share price, r(477) = -.29, p < .01. The weakest negative correlation is between handicap 04 and profitability, r(163) = -.60, p < .01. Regression Analysis Handicap 04 did not significantly predict rank in industry 04, β = -.06, t(178) = -0.80, p = .43. Handicap 04 also did not explain a significant proportion of variance in rank in industry 04, R2 = .004, F(1, 178) = 0.64, p = .43. Table 3 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .060(a) .004 -.002 8.833 a Predictors: (Constant), Handicap_04 ANOVA(b) Model Sum of Squares df Mean Square F Sig. 1 Regression 49.775 1 49.775 .638 .426(a) Residual 13889.336 178 78.030 Total 13939.111 179 a Predictors: (Constant), Handicap_04 b Dependent Variable: RankInIndustry_04 Coefficients(a) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 14.112 1.795 7.861 .000 Handicap_04 -.094 .118 -.060 -.799 .426 a Dependent Variable: RankInIndustry_04 Handicap 04 did not significantly predict sales, β = -.08, t(180) = -1.07, p = .29. Handicap 04 also did not explain a significant proportion of variance in sales, R2 = .08, F(1, 180) = 1.14, p = .29. Table 4 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .079(a) .006 .001 29096.8897 a Predictors: (Constant), Handicap_04 ANOVA(b) Model Sum of Squares df Mean Square F Sig. 1 Regression 966566658.382 1 966566658.382 1.142 .287(a) Residual 152393217822.919 180 846628987.905 Total 153359784481.301 181 a Predictors: (Constant), Handicap_04 b Dependent Variable: Sales Coefficients(a) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 21077.873 5908.821 3.567 .000 Handicap_04 -413.072 386.595 -.079 -1.068 .287 a Dependent Variable: Sales Handicap 04 did not significantly predict net margin 2003, β = -.09, t(169) = 1.22, p = .22. Handicap 04 also did not explain a significant proportion of variance in net margin 2003, R2 = .009, F(1, 169) = 1.45, p = .22. Table 5 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .094(a) .009 .003 7.0792 a Predictors: (Constant), Handicap_04 ANOVA(b) Model Sum of Squares df Mean Square F Sig. 1 Regression 75.036 1 75.036 1.497 .223(a) Residual 8469.399 169 50.115 Total 8544.436 170 a Predictors: (Constant), Handicap_04 b Dependent Variable: NET_MARGIN_2003 Coefficients(a) Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 8.151 1.470 5.546 .000 Handicap_04 .115 .094 .094 1.224 .223 a Dependent Variable: NET_MARGIN_2003 In earlier module 3- SLP, it was shown that 95% confidence interval and T-tests for pair of groups suggested that there was no difference in CEOs mean golf handicap for low, middle and high performing companies. In conclusion, golf handicap 04 does not show any linear relationship with any of the performance measures taken from the S&P 500 report. Read More