Assignment
PART A
Statistical Analysis of Stock returns:
Choose any two public listed companies. Download their historical stock prices from yahoo finance.com for a certain period (daily or monthly)
a) Assess the performance of your stocks by calculating their periodic (daily/monthly) stock returns and represent your returns graphically.
b) Calculate the mean (average) returns of both stocks over the selected time period. Show your work whether done manually or excel.
c) Calculate the variance and standard deviation of returns for both stocks to see if there is any erratic pattern in the stock returns. Show your work whether done manually or excel.
d) Calculate the correlation between the two stocks. Interpret the correlation you get between the two stocks. Show your work whether done manually or excel.
e) Summarize and interpret your findings.
P.S. do not use Data Analysis Tool Pak for this exam. Excel/ Calculators allowed.
PART B
Q.1. A clinical psychologist administered a test with 10 trials designed to measure alertness in three groups of subjects where alertness differed on the basis of their sleeping habits. The resulting data is presented below.
Research question: Is there a difference in the alertness level among the three groups? If yes then how do they differ?
Data: Alertness scores of subjects classified according to sleeping habits
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Very light Sleepers:
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5.3
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5.7
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5.5
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5.9
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5.1
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5.3
|
5.8
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6.0
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6.2
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5.4
|
|
Light Sleepers:
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6.9
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6.2
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6.1
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6.0
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6.6
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6.6
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6.6
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6.4
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6.8
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6.5
|
|
Good Sleepers:
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7.6
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7.7
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7.8
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7.7
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7.6
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7.9
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7.8
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7.5
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7.7
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7.4
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Use appropriate descriptive statistics methods (tabular, graphical and numerical) or any other statistical methods to answer the question of interest. Use tables and charts if needed to explain your answer. Summarize and interpret your findings.
Q.2. Suppose Otis Elevator is going to stop manufacturing elevator rails. Instead, it is going to buy them from an outside supplier. Otis would like each rail to have a diameter of I inch. The company obtained samples of ten elevator rails from each supplier. These are listed in Columns A and B of the table below. Which supplier should Otis prefer? Explain with the appropriate statistical tools. Summarize and interpret your results.
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Supplier 1
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supplier 2
|
|
1.00
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0.96
|
|
0.98
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1.05
|
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1.02
|
1.00
|
|
1.01
|
0.97
|
|
1.00
|
1.00
|
|
0.99
|
1.03
|
|
0.99
|
0.98
|
|
1.00
|
1.02
|
|
1.01
|
0.95
|
|
1.00
|
1.04
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Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.