Project 3 instructions
Based on Brase and Brase: Sections 6.1–6.3
**Note that you must do this project on your own—you may not work with other students. You are always welcome to ask your instructor for help.
In this project you are going to be looking at closing stock prices of the company Alphabet Inc. (GOOG). You will also be referencing sections 6.1-6.3 of your e-text.
Visit theNASDAQ historical prices weblink by typing into your browser https://finance.yahoo.com/quote/GOOG/history.
We are going to be looking at a specific time period in Alphabet Inc.’s history. Set your dates by clicking on the blue dates after “Time Period”. Use a Start Date of 5/21/2017 and an End Date of 5/21/2018. Click the “Done” button.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 (see graphic below).
The downloaded data set will have multiple columns. Only use the column labeled “Close” and copy that data to a new spreadsheet.
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 z-score 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 or you may use your TI calculator. Show your work or explain how you obtained each of your answers.Answers with no work and no explanation will receive no credit.
**For a copy of a Standard Normal Distribution Table, please see Table 5 in the Appendices of your ebook (starting on page A22).
- a) Submit a copy of your dataset along with a file that contains your answers to all of the following questions.
b) What is the mean and
Standard Deviation (SD) of the Close column in your dataset?
** USE POPULATION STANDARD DEVIATION FOR CALCULATIONS **
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)
- $825?(5 points)
- 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)
- 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)
- At what prices would Google have to close in order for it to be
considered statistically unusual or statistically significant outliers? You willhave
a low and high value.There are several possible definitions for
unusual in statistics, but for our project let’s use the definition that an
unusual value is more than 2 standard deviations above or below the mean. So if
the standard deviation is 6 and the mean is 40, then unusual values
would be below 28 (40-(2*6)) or above 52 (40+(2*6)).
(5 points) - 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)
- 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 1to see if it has the right shape.Something in the range of 10 to 12 classes is a good number. If you construct a histogram, please include it in your submitted response.(5 points)
There are also 5 points for miscellaneous items like correct date range, correct mean, correct SD, etc.
Project 3is due by 11:59 p.m. (ET) on Monday, February 18th.
