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Statistics Project - Assignment Example

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First, set the date range to be for exactly 1 year ending with the Monday that this course started. Our term started on 5/11/2015, so us the dates 5/12/2014 – 5/11/2015. So the dates will going back exactly 1 year. Next, click the link on the right that…
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Statistics Project
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Download file to see previous pages 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? 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)
If a person bought 1 share of Google stock within the last year, the probability that the stock on that day closed at less than the mean for that year is 0.50 (or 50%). This is because the normal distribution is symmetric about the mean and the area below (or above) the mean is equal to 0.50 that is the mean divide the area exactly half on both ends (left or right).
4. Suppose a person within the last year claimed to have bought Google stock at closing at $589.50 per share. Would such a price be considered unusual? Be sure to use the definition of unusual from our textbook. (5 points)
No, such a price would not be considered unusual. This is because the probability of buying a Google stock at closing at $589.50 (or higher) is about 0.0507 (or 5.07%) and typically, we say that an event with a probability less than 5% is unusual. However, we can say that it is very close to be considered an unusual price.
5. At what prices would Google have to close at in order for it to be considered statistically unusual? You should have a low and high value. ? Be sure to use the definition of unusual from our textbook. (5 points)
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 should answer without using anything about the Normal distribution. (5 points)
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 our textbook? It does ...Download file to see next pagesRead More
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