Question

In: Statistics and Probability

This question will only use Close Values. Assume that the closing prices of the stock form...

This question will only use 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.

Close Values: 1044.69 1077.15 1080.97 1089.9 1098.26 1070.52 1075.57 1073.9 1090.99 1070.08 1060.62 1089.06 1116.37 1110.75 1132.8 1145.99 1115.23 1098.71 1095.06 1095.01 1121.37 1120.16 1121.67 1113.65 1118.56 1113.8 1096.97 1110.37 1109.4 1115.13 1116.05 1119.92 1140.99 1147.8 1162.03 1157.86 1143.3 1142.32 1175.76 1193.2 1193.32 1185.55 1184.46 1184.26 1198.85 1223.97 1231.54 1205.5 1193 1184.62 1173.02 1168.49 1173.31 1194.43 1200.49 1205.92 1215 1207.15 1203.84 1197.25 1202.16 1204.62 1217.87 1221.1 1227.13 1236.34 1236.37 1248.84 1264.55 1256 1263.45 1272.18 1287.58 1188.48 1168.08 1162.61 1185.4 1189.39 1174.1 1166.27 1162.38 1164.27 1132.03 1120.44 1164.21 1178.98 1162.3 1138.85 1149.63 1151.42 1140.77 1133.47 1134.15 1116.46 1117.95 1103.63 1036.23 1053.05 1042.22 1044.34 1066.04 1080.38 1078.72 1077.03 1088.77 1085.35 1092.5 1103.6 1102.33 1111.42 1121.88 1115.52 1086.35 1079.8 1076.01 1080.91 1097.95 1111.25 1121.58 1131.59 1116.35 1124.83 1140.48 1144.21 1144.9 1150.34 1153.58 1146.35 1146.33 1130.1 1138.07 1146.21 1137.81 1132.12 1250.41 1239.41 1225.14 1216.68 1209.01 1193.99 1152.32 1169.95 1173.99 1204.8 1188.01 1174.71 1197.27 1164.29 1167.26 1177.6 1198.45 1182.69 1191.25 1189.53 1151.29 1168.89 1167.84 1171.02 1192.85 1188.1 1168.39 1181.41 1211.38 1204.93 1204.41 1206 1220.17 1234.25 1239.56 1231.3 1229.15 1232.41 1238.71 1229.93 1234.03 1218.76 1246.52 1241.39 1225.09 1219 1205.1 1176.63 1187.83 1209 1207.68 1189.13 1202.31 1208.67 1215.45 1217.14 1243.01 1243.64 1253.07 1245.49 1246.15 1242.8 1259.13 1260.99 1265.13 1290 1262.62 1261.29 1260.11 1273.74 1291.37 1292.03 1291.8 1308.86 1311.37 1299.19 1298.8 1298 1311.46 1334.87 1320.7 1315.46 1303.05 1301.35 1295.34 1306.69 1313.55 1312.99 1304.96 1289.92 1295.28 1320.54 1328.13 1340.62 1343.56 1344.66 1345.02 1350.27 1347.83 1361.17 1355.12 1352.62 1356.04 1349.59 1348.84 1343.56 1360.4 1351.89 1336.14 1337.02 1367.37 1360.66 1394.21 1393.34 1404.32 1419.83 1429.73

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.

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 $1150?

3.    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? (between 50 below and 50 above the mean)

4.    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 $950 per share. Would this be considered unusal? Use the definition of unusual from the course textbook that is measured as a number of standard deviations

5.    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.

6.    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.

7:   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.

Solutions

Expert Solution

7. Here, Q2-Q1=57.3 and Q3-Q2=59.4 are approximately equal. Hence, the normality assumption that was made at the beginning is valid.


Related Solutions

The following are closing prices of Google stock for a sample of trading days. Use the...
The following are closing prices of Google stock for a sample of trading days. Use the 1-Var Stats command in the TI-84 PLUS calculator to compute the sample standard deviation. 455.21 , 482.37, 483.19, 459.63, 497.99, 475.10, 472.08, 444.95, 489.22 Write only a number as your answer. Round to two decimal places (for example 8.32). Your Answer:
Stock prices: Following are the closing prices of a particular stock for each trading day in...
Stock prices: Following are the closing prices of a particular stock for each trading day in May and June of a recent year. May 884.74 900.68 900.62 886.25 820.43 875.04 877.00 871.98 879.81 890.22 879.73 864.64 859.70 859.10 867.63 880.37 877.07 873.65 866.20 869.79 829.61 June 906.97 908.53 909.18 903.87 915.89 887.10 877.53 880.23 871.48 873.63 857.23 861.55 845.72 871.22 870.76 868.31 881.27 873.32 882.79 (a) Find the mean and median price in May. Round the answers to at least...
Following are closing prices of google stock for a sample pf trading days. Use the 1-Var...
Following are closing prices of google stock for a sample pf trading days. Use the 1-Var stats command in the TI-84 plus calculator to compute the sample standard deviation 457.02,482.37,483.19,454.70,497.99,475.10,472.08,444.95,473.36
Use the following information to answer Question 3 to Question 7 : The closing stock price...
Use the following information to answer Question 3 to Question 7 : The closing stock price of Amazon.com, Inc. for the past 9 days is shown: 86, 88, 87, 86, 85, 90, 93, 82, 89 3. (16 points) The standard deviation of the sample is 4. (12 points) The median of the sample is 5. (24 points) IQR of the sample is 6. (10 points) Mode of the sample is 7. (10 points) Range of the sample is
A random sample of the closing stock prices in dollars for a company in a recent...
A random sample of the closing stock prices in dollars for a company in a recent year is listed below. Assume that σ is ​$2.36. Construct the 90​% and 99​% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. 22.34 17.02 21.44 16.52 22.13 20.58 19.08 16.08 16.09 19.24 19.58 22.67 17.62 19.96 15.18 21.32 The​ 90% confidence interval is ($ ? , $ ?) ​(Round to two decimal places as​ needed.)...
This is a 2-year timeline of Microsoft's stock prices: Date Open High Low Close Adj Close...
This is a 2-year timeline of Microsoft's stock prices: Date Open High Low Close Adj Close Volume 1/1/16 null null null null null null 2/1/16 54.880001 55.09 48.189999 50.880001 48.439545 813425300 3/1/16 50.970001 55.639999 50.580002 55.23 52.958412 640548300 4/1/16 55.049999 56.77 49.349998 49.869999 47.818874 697861300 5/1/16 50 53 49.459999 53 50.820141 530284000 6/1/16 52.439999 52.950001 48.040001 51.169998 49.408588 823351500 7/1/16 51.130001 57.290001 50.389999 56.68 54.728916 647351200 8/1/16 56.599998 58.700001 56.139999 57.459999 55.482067 466729800 9/1/16 57.009998 58.189999 55.610001 57.599998 55.96389 526196300...
Create a line chart for the closing prices for all years, and a stock chart for...
Create a line chart for the closing prices for all years, and a stock chart for the high/low/close prices for August 2013 in the Excel file S&P 500. (Show all steps in excel)
give the following data for stock prices and 5-day moving average. what is the closing stock...
give the following data for stock prices and 5-day moving average. what is the closing stock price on april 16th? date price close 5 day MA 4/17/2018 $20.35 $ 20.240 4/18/2018 $20.03 $20.280 4/19/2018 $20.89 $20.462 4/20/2018 $21.13 $20.636
Use only the information given in a question to answer that question—assume ceteris paribus unless otherwise...
Use only the information given in a question to answer that question—assume ceteris paribus unless otherwise specified. Answer all questions correctly. Consider a Perfectly Competitive market where the demand is given by P = 100 – Q. Use this same demand function for each part of the question. Suppose the market supply is given by Q = 50. Calculate the equilibrium price, quantity, and total Producer Surplus. Draw the graph of the supply and demand functions. Show all calculations. Suppose...
Use only the information given in a question to answer that question—assume ceteris paribus unless otherwise...
Use only the information given in a question to answer that question—assume ceteris paribus unless otherwise specified. Answer all questions correctly. Nearly all cities are non-profit organizations and elected officials are supposed to maximize the welfare of their city.[1] Part of doing this involves hiring managers to operate the various service-providing departments (e.g., trash collection, street repair, etc.).[2] Suppose cities of all sizes across your state/province/region become for-profit corporations. They will issue stock, the stock will be traded on a...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT