Statistics Solutions

(See Steps) The following 3 sets of data represent the Stock prices at the Dow Jones Stock Exchange for the last 15 days for three financial firms that

Question: The following 3 sets of data represent the Stock prices at the Dow Jones Stock Exchange for the last 15 days for three financial firms that are requesting bale outs from us tax payers.

Firm A Firm B Firm C
21.5 122 22.3
23.4 123.6 25.7
24.2 124.9 19
21.1 122.3 15.7
25.3 119.4 45.5
27.4 120.4 22.7
29.2 125.7 26.3
20.2 126.1 29.8
19.4 110.3 23.1
18.4 109.2 24.1
14.2 108.2 15.9
17.9 115.2 14.2
23.8 118.5 12.8
24 124.1 17.8
26.1 127 17.1
mean = 22.41 mean = 119.79 mean = 22.13
sample variance = 15.85 sample variance = 39.78 sample variance.=66.02
  1. Firms A and C have approximately the same mean price during this period. Which firm is less volatile in terms of investor confidence? In other word, if we have to bale out one of them, which is the safer one to go with? Explain your answer using the sample variance.

b) Compute the CV (Coefficient of variation) for Firms A and B and discuss which firm is a safer bet. Explain!

c) In the above, the sample variances given were all computed taking the data as samples. If you were to consider these data sets as populations, will the mean and/or the standard deviation be different?

Mean: stays the same______ should go up______ should come down______
Standard Deviation: stays the same______should go up________should come down______

Price: $2.99
Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document


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