EXTRA-Activity 3

OVERVIEW

This activity applies basic statistical methods to analyze a financial dataset containing liquidity ratios of corporate bonds. The variables Current Ratio, Quick Ratio, and Cash Ratio are selected to study relationships between different measures of a company’s short-term financial stability.

Scatterplots are used to visually examine the relationships between the variables, while covariance is calculated to measure how two variables move together. Descriptive statistics such as mean and standard deviation are also computed to understand the distribution and variability of the data.

Additionally, Chebyshev’s Inequality is used to estimate the proportion of values that lie within a certain number of standard deviations from the mean. This activity demonstrates how statistical tools can help interpret and analyze real-world financial data.