Question

The annual report of Dennis Industries cited these primary earnings per common share for the past 5 years: $2.44, $1.05, $2.09, $4.23, and $7.28. If we assume these are population values.

1. What is the arithmetic mean primary earnings per share of common stock? (Round your answer to 2 decimal places.)

2. What is the variance? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Solution:

The formula for mean and variance for the population is given as below:

Mean = ∑X/n

Variance = ∑(X – mean)^2 / n

The calculation table is given as below:

No.	X	(X - mean)^2
1	2.44	0.956484
2	1.05	5.607424
3	2.09	1.763584
4	4.23	0.659344
5	7.28	14.915044
Total	17.09	23.90188

n = 5

Population Mean = ∑X/n = 17.09/5 = 3.418

Population Variance = ∑(X – mean)^2 / n = 23.90188 / 5 = 4.780376

What is the arithmetic mean primary earnings per share of common stock?

Answer: $3.42

What is the variance?

Answer: $4.78