Assignment
Question 1
You just agreed to take a position of Economic Advisor for InoSmart Inc. The General Manager of the company asked you to describe the nature of salaries paid by the company to its employees last year. The Chief Accountant of the company delivers to you the aggregate monthly salaries data as follows:
Months Aggregate Salaries
January 743430
February 705320
March 67950
April 780240
May 801970
June 69440
July 816550
August 734380
September 791110
October 753370
November 717640
December 805500
• Summarize the data and Provide statistical conclusion based on your statistical output. (Show your statistical procedures that led you to the conclusion.)
• Provide your results to the General Manager (in one or two sentences).
Question 2
As a financial advisor, you are assigned a new client who is considering investing in one of two stocks, A or B. The table below shows information about the performance of stocks A and B last year.
(Average) Return Standard Deviation
Stock A 15% 8.3%
Stock B 15% 2.1%
1. What factors would you consider as a financial advisor in making decisions about the data above?
2. Based on these factors, what stock would you recommend to the client?
3. What reasons will you convey to your client to justify your decision in recommending this stock?
4. How will this recommendation impact the client?
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.