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As of September 30, 2011, the earnings per share (EPS) of five firms in the biotechnology industry are as follows: 1.53, 2.29, 2.07, 1.69, 0.07.

The sample mean and the sample standard deviation are closest to:

A) Sample Mean: 1.53, Sample Standard Deviation: 0.76
B) Sample Mean: 1.53, Sample Standard Deviation: 0.87
C) Sample Mean: 1.69, Sample Standard Deviation: 0.76
D) Sample Mean: 1.69, Sample Standard Deviation: 0.87

Answer :

Final answer:

The sample mean of the EPS values given is 1.53 and the sample standard deviation is approximately 0.87

The correct answer is B).

Explanation:

To find the sample mean, you add all the earnings per share (EPS) values and divide by the number of values. So in this case, (1.53 + 2.29 + 2.07 + 1.69 + 0.07) / 5 = 1.53. To find the sample standard deviation, you first subtract the mean from each EPS value, square the result, add those squared differences together, divide by the number of values minus 1, and then take the square root of that result. The calculations yield a standard deviation of approximately 0.87.

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