For this exercise – pick a company whose stock prices you can track and complete the following:

1) What is the name and NYSE symbol of the selected company?

2) What is its primary business?

3) What categories and types of data are you collecting?

4) Where will you find the data needed for this SLP; e.g., internet or Stars and Stripes?

5) Would a frequency distribution table be appropriate for displaying your data? Create and submit an illustrative frequency table to show how such a table might look when you have collected enough data.

6) Can you compute mean, mode, and median for each of the three data categories you have been collecting? (This does not ask you to do the computation, but tell me why you can or cannot do each of the three central tendency measures for each of the three categories.)

Part II

1. What is the probability that your company's stock price will increase if the DJIA increases? (Hint: What you are looking for is the probability that the stock price will rise GIVEN that the DJIA has risen. This is a conditional probability that you must compute from the data you’ve been collecting.)

Can you hypothesize a meaningful relationship between the data sets? (Hint: A statistical relationship is not meaningful unless a realistic cause-effect linkage between the data sets can be asserted. For example, is there a meaningful relationship between the rooster crowing and the sun coming up each morning? Clearly not, but we can show a strong statistical relationship even though it is not meaningful.)

2. Assuming a meaningful relationship is possible, what would your null and alternative hypotheses be? (Hint: They should be logical opposites. Also, you are testing a relationship; so use a relationship statistic to specify your hypotheses. The answers to questions 2 and 3 can be combined.)

3. How would you test your null hypothesis at the 95% confidence interval? (Hint: Apply and explain each of the hypothesis testing steps given in your background information to testing for the relationship.)

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Solution: The downloadable solution consists of 10 pages, and 982 words
Deliverable: Word Document and pdf