Visit the NASDAQ historical prices weblink. First, set the daterange to be for exactly 1 year ending on the Monday that thiscourse started. For example, if the current term started on April1, 2018, then use April 1, 2017 – March 31, 2018. (Do NOT use thesedates. Use the dates that match up with the current term.) Do thisby clicking on the blue dates after “Time Periodâ€. Next, click the“Apply†button. Next, click the link on the right side of the pagethat says “Download Data†to save the file to your computer.
This project will only use the Close values. Assume that theclosing prices of the stock form a normally distributed data set.This means that you need to use Excel to find the mean and standarddeviation. Then, use those numbers and the methods you learned insections 6.1-6.3 of the course textbook for normal distributions toanswer the questions. Do NOT count the number ofdata points.
Complete this portion of the assignment within a single Excelfile. Show your work or explain how you obtained each of youranswers. Answers with no work and no explanation will receive nocredit.
- a) Submit a copy of your dataset along with a file thatcontains your answers to all of the following questions.
b) What the mean and StandardDeviation (SD) of the Close column in your data set?
c) If a person bought 1 share ofGoogle stock within the last year, what is the probability that thestock 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. Theprobability would be the same for any normal distribution.(5 points)
- If a person bought 1 share of Google stock within the lastyear, what is the probability that the stock on that day closed atmore than $950? (5 points)
- If a person bought 1 share of Google stock within the lastyear, what is the probability that the stock on that day closedwithin $50 of the mean for that year? (between 50 below and 50above the mean) (5 points)
- If a person bought 1 share of Google stock within the lastyear, what is the probability that the stock on that day closed atless than $800 per share. Would this be considered unusal? Use thedefinition of unusual from the course textbook that is measured asa number of standard deviations (5 points)
- At what prices would Google have to close in order for it to beconsidered statistically unusual? You will have a low and highvalue. Use the definition of unusual from the course textbook thatis measured as a number of standard deviations. (5points)
- What are Quartile 1, Quartile 2, and Quartile 3 in this dataset? Use Excel to find these values. This is the only question thatyou must answer without using anything about the normaldistribution. (5 points)
- Is the normality assumption that was made at the beginningvalid? Why or why not? Hint: Does this distribution have theproperties of a normal distribution as described in the coursetextbook? Real data sets are never perfect, however, it should beclose. One option would be to construct a histogram like you did inProject 1 to see if it has the right shape. Something in the rangeof 10 to 12 classes is a good number. (5points)
There are also 5points for miscellaneous items like correct date range,correct mean, correct SD, etc.