In: Statistics and Probability
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. 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.
PLEASE USE DATES: March 16, 2019 - March 15,
2020.
If you use the correct dates the mean should be somewhere between
1200 and 1300. The standard deviation will be between 110 and 120.
You should also have 252 rows in the downloaded spreadsheet. If
your numbers fit those ranges you are doing it correct
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.
Answer:
Given that,
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. 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.
PLEASE USE DATES: March 16, 2019 - March 15,
2020.
If you use the correct dates the mean should be somewhere between
1200 and 1300. The standard deviation will be between 110 and 120.
You should also have 252 rows in the downloaded spreadsheet. If
your numbers fit those ranges you are doing it correctly.
This project 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. 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.
Note: allowed to solve only 4 sub-question per post. hence solved 4 questions, in complete detail
The data has been download for google for the following period.(If an incorrect period, please change and simply put the formulas and you will get the results.
Time Period: March 16, 2019 - March 15, 2020
Put the data in excel as follow and type in the formulas as shown.
For better understanding solved the d question with hand.
We are given,
Mean==1205.639
Standard deviation==90.55
We need to find
P(X > 1150)=1-P( < 1150)
First, we find the Z-score,
Z-score =
Use the normal distribution table we find p-value
P(X < 1150)=0.2694
Hence, the needed probability P(X > 1150)=1-P(X < 1150)
=1-0.2694
=0.7306
We are given,
Mean==1205.639
Standard deviation==90.55
We need to find P( 1155.639 < X < 1255.639):
P( 1155.639 < X < 1255.639)=P(X < 1255.639)-P(X < 1155.639)
Let us find P(X < 1155.639):
Z-score=
Using the normal distribution table will find p-value
P(X < 1155.639)=0.2904
Let us find P(X < 1255.639):
Z-score=
Using the normal distribution table will find p-value
P(X < 1255.639)=0.7096
Hence the needed probability
P( 1155.639 < X < 1255.639)=P(X < 1255.639)-P(X < 1155.639)
=0.7096-0.2904
=0.4192