Suppose the price per share of stock for a sample of 25 companies was recorded at the beginning of the first financial quarter and then again at the end of the first financial quarter. How stocks perform during the first financial quarter is an indicator of what is ahead for the stock market and the economy. Company End of 1st quarter Beginning of 1st quarter Company 1 54.69 55.32 Company 2 56.20 78.52 Company 3 103.07 110.50 Company 4 80.45 85.08 Company 5 126.51 140.73 Company 6 133.23 137.28 Company 7 32.56 42.57 Company 8 51.41 54.54 Company 9 35.90 37.94 Company 10 14.55 19.48 Company 11 33.04 40.04 Company 12 45.33 40.36 Company 13 185.13 189.53 Company 14 109.28 109.45 Company 15 72.46 92.15 Company 16 49.32 55.03 Company 17 36.70 43.73 Company 18 79.57 86.18 Company 19 95.50 87.45 Company 20 43.09 47.09 Company 21 51.32 66.70 Company 22 77.45 86.53 Company 23 46.77 45.99 Company 24 46.45 48.13 Company 25 130.36 129.08 (a) Let di denote the percentage change in price per share for company i where di = end of 1st quarter price per share − beginning of 1st quarter price per share beginning of 1st quarter price per share . Use the sample mean of these values to estimate the percentage change in the stock price over the first quarter. (Round your answer to one decimal place.) % (b) What is the 95% confidence interval estimate of the population mean percentage change in the price per share of stock during the first quarter? (Round your answers to one decimal place.) Interpret this result.

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section: Chapter Questions

Problem 8CR

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Suppose the price per share of stock for a sample of 25 companies was recorded at the beginning of the first financial quarter and then again at the end of the first financial quarter. How stocks perform during the first financial quarter is an indicator of what is ahead for the stock market and the economy.

Company	End of 1st quarter	Beginning of 1st quarter
Company 1	54.69	55.32
Company 2	56.20	78.52
Company 3	103.07	110.50
Company 4	80.45	85.08
Company 5	126.51	140.73
Company 6	133.23	137.28
Company 7	32.56	42.57
Company 8	51.41	54.54
Company 9	35.90	37.94
Company 10	14.55	19.48
Company 11	33.04	40.04
Company 12	45.33	40.36
Company 13	185.13	189.53
Company 14	109.28	109.45
Company 15	72.46	92.15
Company 16	49.32	55.03
Company 17	36.70	43.73
Company 18	79.57	86.18
Company 19	95.50	87.45
Company 20	43.09	47.09
Company 21	51.32	66.70
Company 22	77.45	86.53
Company 23	46.77	45.99
Company 24	46.45	48.13
Company 25	130.36	129.08

(a)

Let d_i denote the percentage change in price per share for company i where

d_i =

end of 1st quarter price per share − beginning of 1st quarter price per share

beginning of 1st quarter price per share

Use the sample mean of these values to estimate the percentage change in the stock price over the first quarter. (Round your answer to one decimal place.)

(b)

What is the 95% confidence interval estimate of the population mean percentage change in the price per share of stock during the first quarter? (Round your answers to one decimal place.)

Interpret this result.

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