In: Statistics and Probability
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.
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.