Grantham University Google stock and Standard Deviation Questions

Visit theNASDAQ historical prices weblink by typing into your browser https://finance.yahoo.com/quote/GOOG/history .

We are going to be looking at a specific time period in Alphabet Inc.’s history. Set your dates by clicking on the blue dates after “Time Period”. Use a Start Date of 8/11/2018 and an End Date of 8/10 /2019 . Click the “Done ” button. Next, click the “Apply” button. Next, click the link on the right side of the page that says “Download Data” to save the file to your computer (see graphic below).

The downloaded data set will have multiple columnsand should look like the table below. Only use the column labeled “Close” and copy that data to a new spreadsheet.Make sure to copy the data to a new spreadsheet and save it either as a .xls or .xlsx file. A .csv file will not save your formulas and I need to be able to see your work.

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 . T hen , use those numbers and the z-score m ethods you learned in sections 6.1 – 6 .3 of the course textbook for n ormal distributions to answer the questions. Do NOT count the number of data points.

Complete this portion of the assignment within a single Excel file or you may use your TI calculator . Show your work or explain how you obtained each of your answers. Answers with no work and no explanation will receive no credit.

If you need some assistance with the basics of using EXCEL and functions, please copy the following links into your browser and review this information:

• https://support.office.com/en-us/article/excel-for…

• https://support.office.com/en-gb/article/excel-fun…

**For a copy of a Standard Normal Distribution Table, please see Table 5 in the Appendices of your ebook(starting on page A22).

1. a) Submit a copy of your dataset along with a file that contains your answers to all of the following questions.

b) What is the mean and Standard Deviation (SD) of the Clos e column in your data set?
** USE POPULATION STANDARD DEVIATION FOR CALCULATIONS **

c) 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)

2. 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 more than \$ 1150 (round to two places) ? ( 5 points)

3. If a person bought 1 share of Google stock within the last year, what is the probability that the st ock on that day closed within \$50 of the mean for that year (round to two places) ? (Hint: this means the probability of being between 50 below and 50 above the mean). (5 points)

4. 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 \$ 1050 per share (round to two places) ? Would this be considered unus u al? U se the definition that an unusual value is more than 2 standard devi ations above or below the mean. (5 points)

5. At what price s would Google have to close in order for it to be considered statistically unusual or statistically significant outliers ? You will have a low and high value. There are several possible definitions for unusual in statistics, but for our project let’s use the definition that an unusual value is more than 2 standard devi ations above or below the mean. (5 points)

6. What are Q uartile 1, Q uartile 2 , and Q uartile 3 in this data set? Use Excel to find these values. This is the only question that you must answer without using anything about the n ormal distribution. (5 points)

7. Is the normality assumption that w as made at the beginning valid? Why or why not? Hint: Does this distribution have the properties of a normal distribution as described in the course textbook ? Real data sets are never perfect , h owever, it should be close. One option would be to c onstruct a histogram like you did in Project 1 to see if it has the right shape. S omething in the range of 10 to 12 classes is a good number. If you construct a histogram, please include it in your submitted response. (5 points)