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 Bank of New York Mellon 54.19 53.82 Kraft Foods 55.70 77.02 E.I. du Pont de Nemours and Company 102.57 109.00 Consolidated Edison 79.95 83.58 Johnson & Johnson 126.01 139.23 Union Pacific 132.73 135.78 Comcast 32.06 41.07 Applied Materials 50.91 53.04 Pfizer 35.40 36.44 General Electric 14.05 17.98 AT&T 32.54 38.54 Cisco Systems 44.83 38.86 Home Depot 184.63 188.03 JP Morgan Chase 108.78 107.95 Procter & Gamble 71.96 90.65 Verizon 48.82 53.53 Devon Energy 36.20 42.23 Lilly 79.07 84.68 Microsoft 95.00 85.95 Coca Cola 42.59 45.59 Qualcomm 50.82 65.20 Exxon Mobil Corporation 76.95 85.03 PG&E Corporation 46.27 44.49 Oracle Corporation 45.95 46.63 Chevron 129.86 127.58 (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 (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.) ___% to ___%
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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
Bank of New York Mellon 54.19 53.82
Kraft Foods 55.70 77.02
E.I. du Pont de Nemours and Company 102.57 109.00
Consolidated Edison 79.95 83.58
Johnson & Johnson 126.01 139.23
Union Pacific 132.73 135.78
Comcast 32.06 41.07
Applied Materials 50.91 53.04
Pfizer 35.40 36.44
General Electric 14.05 17.98
AT&T 32.54 38.54
Cisco Systems 44.83 38.86
Home Depot 184.63 188.03
JP Morgan Chase 108.78 107.95
Procter & Gamble 71.96 90.65
Verizon 48.82 53.53
Devon Energy 36.20 42.23
Lilly 79.07 84.68
Microsoft 95.00 85.95
Coca Cola 42.59 45.59
Qualcomm 50.82 65.20
Exxon Mobil Corporation 76.95 85.03
PG&E Corporation 46.27 44.49
Oracle Corporation 45.95 46.63
Chevron 129.86 127.58
(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
(b)What is the 95% confidence
___% to ___%
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
