Earnings per share. The earnings per share​ (in dollars) for 12 companies selected at random from the list of Fortune 500 companies​ are:
0.53
0.55
6.07
6.65
1.85
8.42
6.79
6.54
1.91
1.59
8.48
8.49
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Part 1
a. Find the mean of the earnings per share. ​$

enter your response here
​(Type an integer or a decimal. Round to two decimal​ places.)

To find the mean of the earnings per share (EPS) for the 12 companies, you need to sum all the earnings per share and then divide by the number of companies.

Here are the earnings per share for the 12 companies:

\[
\text{EPS values: } 0.53, 0.55, 6.07, 6.65, 1.85, 8.42, 6.79, 6.54, 1.91, 1.59, 8.48, 8.49
\]

**Step 1:** Sum all the EPS values.

\[
\text{Sum} = 0.53 + 0.55 + 6.07 + 6.65 + 1.85 + 8.42 + 6.79 + 6.54 + 1.91 + 1.59 + 8.48 + 8.49 = 57.87
\]

**Step 2:** Divide the sum by the number of companies (which is 12) to find the mean.

\[
\text{Mean} = \frac{57.87}{12} = 4.8225
\]

**Step 3:** Round to two decimal places.

\[
\text{Mean EPS} \approx 4.82
\]

So, the mean of the earnings per share is **$4.82**.

Would you like any further details or explanations?

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Here are some related questions:

1. What is the median earnings per share for these companies?
2. How do you calculate the standard deviation of the earnings per share?
3. What is the range of the earnings per share for these companies?
4. How would you interpret the mean earnings per share in the context of company performance?
5. What would be the impact on the mean if one company's earnings per share were significantly higher?
6. How do outliers affect the mean earnings per share?
7. How does the mean compare to the median in this dataset?
8. What other statistical measures could provide insight into the distribution of earnings per share?

**Tip:** The mean is a useful measure of central tendency, but it can be affected by extreme values. Always consider the context and other statistics when interpreting the mean.

Learn how to calculate the mean earnings per share (EPS) for 12 randomly selected Fortune 500 companies. Understand the step-by-step process of summing EPS values and dividing by the number of companies. Example solution provided with EPS values and rounded result. Suitable for high school students and anyone interested in basic statistics.

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