Question

Date	Close
7/3/2017	898.700012
7/5/2017	911.710022
7/6/2017	906.690002
7/7/2017	918.590027
7/10/2017	928.799988
7/11/2017	930.090027
7/12/2017	943.830017
7/13/2017	947.159973
7/14/2017	955.98999
7/17/2017	953.419983
7/18/2017	965.400024
7/19/2017	970.890015
7/20/2017	968.150024
7/21/2017	972.919983
7/24/2017	980.340027
7/25/2017	950.700012
7/26/2017	947.799988
7/27/2017	934.090027
7/28/2017	941.530029
7/31/2017	930.5
8/1/2017	930.830017
8/2/2017	930.390015
8/3/2017	923.650024
8/4/2017	927.960022
8/7/2017	929.359985
8/8/2017	926.789978
8/9/2017	922.900024
8/10/2017	907.23999
8/11/2017	914.390015
8/14/2017	922.669983
8/15/2017	922.219971
8/16/2017	926.960022
8/17/2017	910.97998
8/18/2017	910.669983
8/21/2017	906.659973
8/22/2017	924.690002
8/23/2017	927
8/24/2017	921.280029
8/25/2017	915.890015
8/28/2017	913.809998
8/29/2017	921.289978
8/30/2017	929.570007
8/31/2017	939.330017
9/1/2017	937.340027
9/5/2017	928.450012
9/6/2017	927.809998
9/7/2017	935.950012
9/8/2017	926.5
9/11/2017	929.080017
9/12/2017	932.070007
9/13/2017	935.090027
9/14/2017	925.109985
9/15/2017	920.289978
9/18/2017	915
9/19/2017	921.809998
9/20/2017	931.580017
9/21/2017	932.450012
9/22/2017	928.530029
9/25/2017	920.969971
9/26/2017	924.859985
9/27/2017	944.48999
9/28/2017	949.5
9/29/2017	959.109985
10/2/2017	953.27002
10/3/2017	957.789978
10/4/2017	951.679993
10/5/2017	969.960022
10/6/2017	978.890015
10/9/2017	977
10/10/2017	972.599976
10/11/2017	989.25
10/12/2017	987.830017
10/13/2017	989.679993
10/16/2017	992
10/17/2017	992.179993
10/18/2017	992.809998
10/19/2017	984.450012
10/20/2017	988.200012
10/23/2017	968.450012
10/24/2017	970.539978
10/25/2017	973.330017
10/26/2017	972.559998
10/27/2017	1019.27002
10/30/2017	1017.109985
10/31/2017	1016.640015
11/1/2017	1025.5
11/2/2017	1025.579956
11/3/2017	1032.47998
11/6/2017	1025.900024
11/7/2017	1033.329956
11/8/2017	1039.849976
11/9/2017	1031.26001
11/10/2017	1028.069946
11/13/2017	1025.75
11/14/2017	1026
11/15/2017	1020.909973
11/16/2017	1032.5
11/17/2017	1019.090027
11/20/2017	1018.380005
11/21/2017	1034.48999
11/22/2017	1035.959961
11/24/2017	1040.609985
11/27/2017	1054.209961
11/28/2017	1047.410034
11/29/2017	1021.659973
11/30/2017	1021.409973
12/1/2017	1010.169983
12/4/2017	998.679993
12/5/2017	1005.150024
12/6/2017	1018.380005
12/7/2017	1030.930054
12/8/2017	1037.050049
12/11/2017	1041.099976
12/12/2017	1040.47998
12/13/2017	1040.609985
12/14/2017	1049.150024
12/15/2017	1064.189941
12/18/2017	1077.140015
12/19/2017	1070.680054
12/20/2017	1064.949951
12/21/2017	1063.630005
12/22/2017	1060.119995
12/26/2017	1056.73999
12/27/2017	1049.369995
12/28/2017	1048.140015
12/29/2017	1046.400024
1/2/2018	1065
1/3/2018	1082.47998
1/4/2018	1086.400024
1/5/2018	1102.22998
1/8/2018	1106.939941
1/9/2018	1106.26001
1/10/2018	1102.609985
1/11/2018	1105.52002
1/12/2018	1122.26001
1/16/2018	1121.76001
1/17/2018	1131.97998
1/18/2018	1129.790039
1/19/2018	1137.51001
1/22/2018	1155.810059
1/23/2018	1169.969971
1/24/2018	1164.23999
1/25/2018	1170.369995
1/26/2018	1175.839966
1/29/2018	1175.579956
1/30/2018	1163.689941
1/31/2018	1169.939941
2/1/2018	1167.699951
2/2/2018	1111.900024
2/5/2018	1055.800049
2/6/2018	1080.599976
2/7/2018	1048.579956
2/8/2018	1001.52002
2/9/2018	1037.780029
2/12/2018	1051.939941
2/13/2018	1052.099976
2/14/2018	1069.699951
2/15/2018	1089.52002
2/16/2018	1094.800049
2/20/2018	1102.459961
2/21/2018	1111.339966
2/22/2018	1106.630005
2/23/2018	1126.790039
2/26/2018	1143.75
2/27/2018	1118.290039
2/28/2018	1104.72998
3/1/2018	1069.52002
3/2/2018	1078.920044
3/5/2018	1090.930054
3/6/2018	1095.060059
3/7/2018	1109.640015
3/8/2018	1126
3/9/2018	1160.040039
3/12/2018	1164.5
3/13/2018	1138.170044
3/14/2018	1149.48999
3/15/2018	1149.579956
3/16/2018	1135.72998
3/19/2018	1099.819946
3/20/2018	1097.709961
3/21/2018	1090.880005
3/22/2018	1049.079956
3/23/2018	1021.570007
3/26/2018	1053.209961
3/27/2018	1005.099976
3/28/2018	1004.559998
3/29/2018	1031.790039
4/2/2018	1006.469971
4/3/2018	1013.409973
4/4/2018	1025.140015
4/5/2018	1027.810059
4/6/2018	1007.039978
4/9/2018	1015.450012
4/10/2018	1031.640015
4/11/2018	1019.969971
4/12/2018	1032.51001
4/13/2018	1029.27002
4/16/2018	1037.97998
4/17/2018	1074.160034
4/18/2018	1072.079956
4/19/2018	1087.699951
4/20/2018	1072.959961
4/23/2018	1067.449951
4/24/2018	1019.97998
4/25/2018	1021.179993
4/26/2018	1040.040039
4/27/2018	1030.050049
4/30/2018	1017.330017
5/1/2018	1037.310059
5/2/2018	1024.380005
5/3/2018	1023.719971
5/4/2018	1048.209961
5/7/2018	1054.790039
5/8/2018	1053.910034
5/9/2018	1082.76001
5/10/2018	1097.569946
5/11/2018	1098.26001
5/14/2018	1100.199951
5/15/2018	1079.22998
5/16/2018	1081.77002
5/17/2018	1078.589966
5/18/2018	1066.359985
5/21/2018	1079.579956
5/22/2018	1069.72998
5/23/2018	1079.689941
5/24/2018	1079.23999
5/25/2018	1075.660034
5/29/2018	1060.319946
5/30/2018	1067.800049
5/31/2018	1084.98999
6/1/2018	1119.5
6/4/2018	1139.290039
6/5/2018	1139.660034
6/6/2018	1136.880005
6/7/2018	1123.859985
6/8/2018	1120.869995
6/11/2018	1129.98999
6/12/2018	1139.319946
6/13/2018	1134.790039
6/14/2018	1152.119995
6/15/2018	1152.26001
6/18/2018	1173.459961
6/19/2018	1168.060059
6/20/2018	1169.839966
6/21/2018	1157.660034
6/22/2018	1155.47998
6/25/2018	1124.810059
6/26/2018	1118.459961
6/27/2018	1103.97998
6/28/2018	1114.219971
6/29/2018	1115.650024
7/2/2018	1127.459961

Project 3 instructions

Based on Larson & Farber: sections 5.2–5.3

Using the provided data. Assume that the closing prices of the stock form a normally distributed data set. This means that you need to use Excel to find the mean and standard deviation. Then, use those numbers and the methods you learned in sections 5.2–5.3 of the course textbook for normal distributions to answer the questions. Do NOT count the number of data points.

Complete this portion of the assignment within a single Excel file. Show your work or explain how you obtained each of your answers. Answers with no work and no explanation will receive no credit.

Show all work

1) If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at less than the mean for that year? Hint: You do not want to calculate the mean to answer this one. The probability would be the same for any normal distribution. (5 points)

2) If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at more than $825? (5 points)

3a) If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed within $50 of the mean for that year? (5 points)

3b) If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at less than $700 per share. (5 points)

3c) At what prices would Google have to close in order for it to be considered statistically unusual? You will have a low and high value. Use the definition of unusual from the course textbook that is measured as a number of standard deviations. (5 points)

4) What are Quartile 1, Quartile 2, and Quartile 3 in this data set? Use Excel to find these values. This is the only question that you must answer without using anything about the normal distribution. (5 points)

5) Is the normality assumption that was made at the beginning valid? Why or why not? Hint: Does this distribution have the properties of a normal distribution as described in the course textbook? Real data sets are never perfect, however, it should be close. One option would be to construct a histogram like you did in Project 1 to see if it has the right shape. Something in the range of 10 to 12 classes is a good number. (5 points)

There are also 5 points for miscellaneous items like correct date range, correct mean, correct SD, etc.

Answer 1

Using excel command as ,

1) To find mean , =AVERAGE( ....) in blank select data and then hit enter you will get mean .

2) To find standard deviation , Use command as =STDEV(......) in blank select data then hit enter you will get final answer for standard deviation .

---------------

1) If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at less than the mean for that year?

So here let X= random variable with normal distribution with mean and standard deviation .

Where x = the closing prices of the stock .

So here find , P( X < mean ) .

Here use excel command as =NORMDIS(x, mean , standard deviation , cumulative )

So here plug x= mean = 1033.545, mean = 1033.545, standard deviation =76.635, use cumulative = 1.

So here we get , the probability that the stock on that day closed at less than the mean for that year 0.5.