Using Financial Investment Measures to Proactively Engage Students in the Introductory Business Statistics Course

Figures & data

Table 1. 2005 GAISE College Report Recommendations to enhance pedagogical delivery.

Recommendations
1–Emphasize statistical literacy and develop statistical thinking
2–Use real data
3–Stress conceptual understanding rather than mere knowledge of procedures
4–Foster active learning
5–Use technology to develop conceptual understanding and to analyze data
6–Use assessments to improve and evaluate learning

Table 2. A comparison of two companies: Descriptive summary measures.

Company	Mean (%)	SD (%)	Sharpe	Beta	Alpha (%)	Treynor (%)
Toyota
Actual	1.0248	5.5714	0.16823	0.61968	0.3921	1.5126
Resample	1.0275	5.4978	0.17170	0.62363	0.4217	1.6989
Honda
Actual	0.1671	6.5820	0.01209	1.00470	−0.8587	0.0792
Resample	0.1758	6.4989	0.01638	1.00283	−0.8372	0.1205
Difference
Actual	0.8577	−1.0106	0.15614	−0.38502	1.2508	1.4334
Resample	0.8517	−1.0011	0.15532	−0.37919	1.2590	1.5783

Figure 1. Bootstrap distribution of the difference in Sharpe ratios for Toyota and Honda.

Figure 2. Bootstrap distribution of the difference in beta coefficients for Toyota and Honda.

Figure 3. Bootstrap distribution of the difference in alpha coefficients for Toyota and Honda.

Figure 4. Bootstrap distribution of the difference in Treynor ratios for Toyota and Honda.

Table 3. A comparison of two companies: 95% bootstrap percentile confidence interval estimates on four financial investment measures.

Measure	Sharpe	Ratio	Beta	Coef.	Alpha	Coef.	Treynor	Ratio
Confidence interval	Lower limit	Upper limit	Lower limit	Upper limit	Lower limit (%)	Upper limit (%)	Lower limit (%)	Upper limit (%)
Toyota	−0.0764	0.4353	0.2941	0.9510	−0.8528	1.7334	−0.6871	5.3532
Honda	−0.2329	0.2773	0.6313	1.3712	−2.2502	0.6392	−1.5775	2.0267
Difference	−0.0259	0.3469	−0.6276	−0.0879	0.1358	2.3973	−0.1081	4.1513

Table 4. A comparison of beta coefficients for two companies: Permutation distributions and 95% confidence interval estimates.

Company	Mean	SD	Lower limit	Upper limit
Toyota	−0.00068	0.19422	−0.38542	0.37385
Honda	0.00258	0.22714	−0.45183	0.45588
Difference	−0.00327	0.16360	−0.31881	0.31702

Figure 5. Permutation distribution of the difference in beta coefficients for Toyota and Honda.