Rose is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she discovers the following standard deviations of one year of daily stock closing prices. Eye Remember Enterprises: Standard deviation of stock prices = $9.85 The Azure Travel Company: Standard deviation of stock prices Based on the data and assuming these trends continue, which company would give Rose a stable long-term investment? = $1.12 Answer E Tables E Keypad Keyboard Shortcuts The Azure Travel Company; the smaller standard deviation indicates that The Azure Travel Company has a greater mean closing price than Eye Remember Enterprises. The Azure Travel Company; the smaller standard deviation indicates that The Azure Travel Company has less variability in its closing prices than Eye Remember Enterprises. Eye Remember Enterprises; the larger standard deviation indicates that Eye Remember Enterprises has a greater mean closing price than The Azure Travel Company. Submit Answer
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.
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