Answered: Descriptive statistics for the closing…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section: Chapter Questions

Problem 8SGR

See similar textbooks

Related questions

Concept explainers

Question

Descriptive statistics for the closing stock prices of two companies for several trading periods are shown below.

Company A

Mean	4.04
Standard Error	0.12
Median	4.37
Mode	3.59
Standard Deviation	1.17
Sample Variance	1.38
Kurtosis	−1.1
Skewness	0.24
Range	4.88
Minimum	2.00
Maximum	6.88
Sum	416.05
Count	103

Company B

Mean	16.41
Standard Error	0.21
Median	17.03
Mode	16.59
Standard Deviation	2.32
Sample Variance	5.38
Kurtosis	9.1
Skewness	−2.45
Range	12.37
Minimum	6.29
Maximum	18.66
Sum	1,919.63
Count	117

(a)

Which company's stock price has a more dispersed distribution? Explain. Show your complete work and support your answer. (Round your numerical answers to two decimal places.)

The coefficient of variation for company A is %, while the coefficient of variation for company B is %. Therefore, the stock prices for ---Select--- company A company B show a more dispersed distribution.

(b)

Compare the skewness of the two and explain what is indicated.

Since the skewness of company A is positive, its data is skewed to the ---Select--- left right . Since the skewness of company B is negative, its data is skewed to the ---Select--- left right .

Definition Definition Measure of central tendency that is the value that occurs most frequently in a data set. A data set may have more than one mode if multiple categories repeat an equal number of times. For example, in a data set with five item—3, 5, 5, 29, 473—the mode is 5 because it occurs twice and no other value occurs more than once. On a histogram or bar chart, the element with the highest bar represents the mode. Therefore, the mode is sometimes considered the most popular option. The mode is useful for nominal or categorical data (e.g., the most common color car that users purchase), but it is problematic for continuous data because it is more likely not to have any value that is more frequent than the other.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Point Estimation, Limit Theorems, Approximations, and Bounds$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.