Below is the population of five most widely used social media
platforms. I report the number of active users for each and the
market cap of the parent company.
Social media platform
Monthly active users, millions
Market cap,
$ billions
Facebook (Meta)
2,895
645
You-Tube (Alphabet)
2,291
1,500
WhtsApp (Meta)
2,000
645
Instagram (Meta)
1,393
645
Facebook Messenger (Meta)
1,300
645
Weixin/WeChat (Tencent)
1,251
584
TikTok (ByteDance)
1,000
140
(a) Compose a crosstabulation for two classes of active users
(midpoints are 1474 and 2421) and three classes of market cap
(midpoints are 367, 820, and 1,273).
(b) Compute the row and column relative frequencies. You can add
them to your crosstabulation in (a) if you like.
Looking at the crosstabulation, is there a relationship between
the size of the social media platform and the market cap of the
company? What kind of a relationship is it? Comment briefly on why
you think what you observe is the case.
Below is the population of five most widely used social media platforms. I report the number of active users for each an
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