There is some evidence that, in the years −198185 , a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v. 6 , pp. −32035,1987 .) Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about 0.89 %, with a standard deviation of 0.16 %. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years. (a) According to Chebyshev's theorem, at least ?56%75%84%89% of the relative increases in stock price lie between 0.57 % and 1.21 %. (b) According to Chebyshev's theorem, at least 8/9 (about 89%) of the relative increases in stock price lie between % and % . (Round your answer to 2 decimal places.) (c) Suppose that the distribution is bell-shaped. According to the empirical rule, approximately 68% of the relative increases in stock price lie between % and % . (d) Suppose that the distribution is bell-shaped. According to the empirical rule, approximately ?68%75%95%99.7% of the relative increases in stock price lie between 0.57 % and 1.21 %.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

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There is some evidence that, in the years

−198185

, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v.

, pp.

−32035,1987

Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about

0.89

%, with a standard deviation of

0.16

%. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years.

(a) According to Chebyshev's theorem, at least ?56%75%84%89% of the relative increases in stock price lie between 0.57 % and 1.21 %.

(b) According to Chebyshev's theorem, at least 8/9 (about 89%) of the relative increases in stock price lie between

and

. (Round your answer to 2 decimal places.)

(c) Suppose that the distribution is bell-shaped. According to the empirical rule, approximately 68% of the relative increases in stock price lie between

and

(d) Suppose that the distribution is bell-shaped. According to the empirical rule, approximately ?68%75%95%99.7% of the relative increases in stock price lie between 0.57 % and 1.21 %.

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