Listed below is the selling price for a share of PepsiCO Inc. at the close of each year. Year Price Year Price 1990 12.9135 2000 49.5625 1991 16.8250 2001 48.6803 1992 20.6125 2002 42.2211 1993 20.3024 2003 46.6215 1994 18.3160 2004 52.2019 1995 27.7538 2005 59.8534 1996 29.0581 2006 62.0002 1997 36.0155 2007 77.5108 1998 40.6111 2008 54.7719 1999 35.0230 2009 60.8025
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.
Listed below is the selling price for a share of PepsiCO Inc. at the close of each year.
Year Price Year Price
1990 12.9135 2000 49.5625
1991 16.8250 2001 48.6803
1992 20.6125 2002 42.2211
1993 20.3024 2003 46.6215
1994 18.3160 2004 52.2019
1995 27.7538 2005 59.8534
1996 29.0581 2006 62.0002
1997 36.0155 2007 77.5108
1998 40.6111 2008 54.7719
1999 35.0230 2009 60.8025
1.Estimate the selling price in 2014.
2.Does this seem like a reasonable estimate based on historical data? Why or why not?
3.By how much has the stock price increased or decreased (per year) on average during the period?
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