Chapter 11: Q-25E (page 649)

Refer to the Academy of Management Journal(Aug. 2008) study of corporateacquisitions from 1980 to 2000, Exercise 2.12 (p. 74). Thedata file includes the number of firms with at least one
acquisition each year.
a.Construct either a dot plot or a stem-and-leaf display
for the annual number of firms with at least one
acquisition.
b.On the graph, part a, highlight (or circle) the values for
the years 1996–2000. Do you detect a pattern? If so,
what conclusion can you draw from the data?
Year
Number of firms sampled
Number with acquisitions
1980
1963
18
1990
2197
350
2000
2778
748
Total
6938
1116

Short Answer

Expert verified

a.) The key of the stem and leaf display are defined as 28.

b.) The value of the year 1996 to 2000 is 28. Therefore years 1996- 2000 had the highest number of firms with at least one acquisition.

Step by step solution

Given information

Given that the data file includes the number of firms with at least one acquisitions. The study of corporate acquisitions from 1980 to 2000 to define in tabulation form.

Construct dot plot or stem and leaf display

a.) The stem and leaf display will be given by

Number of firms sampled	Stem	Leaf
1963	19	19
2197	21	97
2778	27	78

The stem and leaf display with one number

(18) with acquisitions. Then the key is taken from the stem and leaf display to given by $2 |8 = 28$ .

Highlight the value of year to . And also detect pattern and conclusions

b. The value of the year 1996 to 2000 is 28 . The detected pattern follows the stem and leaf display graph and this interval of the year the key is defined.