MATH 201 Project 3 Instructions Based on Larson & Farber: Sections 5.2-5.3
A project examining probability and statistical techniques.
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MATH 201MATH 201PROJECT3INSTRUCTIONSBasedon Larson & Farber: sections 5.2-5.3Go tothis website.First,setthe date range tobe for exactly1 yearending with the Monday that this classstarted.For example, if the current term started on 04/01/2014, then use 04/01/2013–03/31/2014.Your dateswillgoing back exactly1year.Next, clickthe link on the right that saysDownload to Spreadsheetand thensave the file to your computer.This project willonly use the Closing Values.Assume that the closing prices of the stock form a normallydistributed data set.This means that you need to use Excel to find the mean and standard deviation and then usethose numbers and the methods you learned in sections 5.2 and 5.3 of our text book for Normal distributions toanswer the questions.Complete this assignment within a single Excel file.Show your workor explain how you obtained each of youranswers.Answers with no work and no explanation will receive no credit.The descriptive statistics of closing price is given below,CloseMean549.5996Standard Error1.5477Median547.49Mode575.28Standard Deviation24.5208Sample Variance601.2672Kurtosis-0.8391Skewness-0.0708Range103.53Minimum492.55Maximum596.08Sum137949.5Count2511.If a person bought1share of Google stock within the last year, what is the probability that the stock onthat day closed at less than the mean for that year?Hint:You do not wantto calculate the mean toanswer this one. Theprobabilitywould 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 closedat less than the mean for that year is 0.5.2.If a person boughtoneshare of Google stock within the last year, what isthe probabilitythat the stockonthat day closed at more than $525?(6 points)Z score for $525 = (525-549.5996)/24.5208=-1.00
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