In: Statistics and Probability
Project 3 instructions
Based on Brase & Brase: sections 6.1-6.3
Visit the NASDAQ historical prices weblink. First, set the date range to be for exactly 1 year ending on the Monday that this course started. For example, if the current term started on April 1, 2018, then use April 1, 2017 – March 31, 2018. (Do NOT use these dates. Use the dates that match up with the current term.) Do this by clicking on the blue dates after “Time Period”. Next, click the “Apply” button. Next, click the link on the right side of the page that says “Download Data” to save the file to your computer. NOTE THIS CLASS BEGAN ON 1/20/2020 please use this date to help me answer these questions... PLEASE ONLY HELP ME WITH QUESTIONS 5-7!! I have the first four completed with help!
This project will only use the Close values. 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 6.1-6.3 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.
b) What the mean and Standard Deviation (SD) of the Close column in your data set?
c) 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)
There are also 5 points for miscellaneous items like correct date range, correct mean, correct SD, etc.
Project 3 is due by 11:59 p.m. (ET) on Monday of Module/Week 5.
The data range is take as follows for the data
The data download.
Put the following data in excel as shown
Worked out by hand
Go to data -> data anaylsis -> histogram
Insert the values as shown
From the histogram we see that the closing price is normally distribued.