Project #1 - Market Capitalization and Profit

Project #1

Market Capitalization and Profit by Sector. The file  Fortune500Sector contains data on the profits, market capitalizations, and industry sector for a recent sample of firms in the Fortune 500. LO 5

1. Differentiating observations by using a different color for each industry sector, prepare a scatter chart to show the relationship between the variables Market Capitalization and Profit in which Market Capitalization is on the vertical axis and Profit is on the horizontal axis.

2. Emphasize the relationship between Market Capitalization and Profit within the healthcare sector by formatting all other sectors with data points in gray with no fill. Create a trendline based only on the observations in the healthcare sector. What does the trendline indicate about this relationship between Market Capitalization and Profit within the healthcare sector?

 

Data

Company                           Sector            Profits ($ millions)            Market Capitalization ($ millions)

Alliant Techsystems        Industrials           313.2     1891.9

Amazon.com                   Consumer             631         81458.6

AmerisourceBergen       Healthcare          706.6     10087.6

Avis Budget Group          Industrials           -29          1175.8

Boeing                               Industrials              4,018.00               55188.8

Cardinal Health                Healthcare           959         14115.2

Cisco Systems                   Technology          6,490.00               97376.2

Coca-Cola                           Consumer            8,572.00               157130.5

ConocoPhillips                  Energy   12,436.00             95251.9

Costco Wholesale            Consumer           1,462.00               36461.2

CVS Caremark                  Healthcare           3,461.00               53575.7

Delta Air Lines                  Industrials            854         7082.1

Fidelity National Financial             Financial               369.5     3461.4

FMC Technologies           Industrials           399.8     12520.3

Foot Locker                       Consumer            278         3547.6

General Motors                               Consumer            9,190.00               32382.4

Harley-Davidson               Consumer           599.1     8925.3

HCA Holdings                    Healthcare           2,465.00               9550.2

Kraft Foods                        Consumer            3,527.00               65917.4

Kroger                                Consumer             602         13819.5

Lockheed Martin              Industrials          2,655.00               26651.1

Medco Health Solutions                Healthcare         1,455.70               21865.9

Owens Corning                 Industrials           276         3417.8

Pitney Bowes    Industrials           617.5     3681.2

Procter & Gamble            Consumer           11,797.00             182109.9

Ralph Lauren      Consumer           567.6     12522.8

Rockwell Automation     Industrials           697.8     10514.8

Rockwell Collins                Industrials           634         8560.5

United Stationers            Industrials           109         1381.6

United Technologies      Industrials           4,979.00               66606.5

UnitedHealth Group       Healthcare          5,142.00               53469.4