MATH 201 Project 3 Instructions Based on Larson & Farber: Sections 5.2-5.3
A project examining probability and statistical techniques.
Isabella White
Contributor
4.0
43
28 days ago
Preview (2 of 3)
Sign in to access the full document!
MATH 201
MATH 201
PROJECT 3 INSTRUCTIONS
Based on Larson & Farber: sections 5.2-5.3
Go to this website. First, set the date range to be for exactly 1 year ending with the Monday that this class
started. For example, if the current term started on 04/01/2014, then use 04/01/2013 – 03/31/2014. Your dates
will going back exactly 1 year. Next, click the link on the right that says Download to Spreadsheet and then
save the file to your computer.
This project will only use the Closing 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 and then use
those numbers and the methods you learned in sections 5.2 and 5.3 of our text book for Normal distributions to
answer the questions.
Complete this 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.
The descriptive statistics of closing price is given below,
Close
Mean 549.5996
Standard Error 1.5477
Median 547.49
Mode 575.28
Standard Deviation 24.5208
Sample Variance 601.2672
Kurtosis -0.8391
Skewness -0.0708
Range 103.53
Minimum 492.55
Maximum 596.08
Sum 137949.5
Count 251
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. (4 points)
Normal distribution is symmetric about its mean hence the probability that the stock on that day closed
at less than the mean for that year is 0.5.
2. If a person bought one share of Google stock within the last year, what is the probability that the stock
on that day closed at more than $525? (6 points)
Z score for $525 = (525-549.5996)/ 24.5208 = -1.00
MATH 201
PROJECT 3 INSTRUCTIONS
Based on Larson & Farber: sections 5.2-5.3
Go to this website. First, set the date range to be for exactly 1 year ending with the Monday that this class
started. For example, if the current term started on 04/01/2014, then use 04/01/2013 – 03/31/2014. Your dates
will going back exactly 1 year. Next, click the link on the right that says Download to Spreadsheet and then
save the file to your computer.
This project will only use the Closing 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 and then use
those numbers and the methods you learned in sections 5.2 and 5.3 of our text book for Normal distributions to
answer the questions.
Complete this 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.
The descriptive statistics of closing price is given below,
Close
Mean 549.5996
Standard Error 1.5477
Median 547.49
Mode 575.28
Standard Deviation 24.5208
Sample Variance 601.2672
Kurtosis -0.8391
Skewness -0.0708
Range 103.53
Minimum 492.55
Maximum 596.08
Sum 137949.5
Count 251
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. (4 points)
Normal distribution is symmetric about its mean hence the probability that the stock on that day closed
at less than the mean for that year is 0.5.
2. If a person bought one share of Google stock within the last year, what is the probability that the stock
on that day closed at more than $525? (6 points)
Z score for $525 = (525-549.5996)/ 24.5208 = -1.00
Preview Mode
Sign in to access the full document!
100%
Study Now!
XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat
Document Details
University
University of Canterbury
Subject
Mathematics