Suppose you own shares of a company's stock, the price of which has risen so that, over the past ten trading days, its mean selling price is $14.89. Over the years, the mean price of the stock has been $10.43 (σX= $5.60.) You wonder if the mean selling price over the next ten days can be expected to go higher. Should you wait to sell, or should you sell now?
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.
Suppose you own shares of a company's stock, the price of which has risen so that, over the past ten trading days, its
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