Statistics for Business & Economics
12th Edition
ISBN: 9781285528830
Author: David R. Anderson
Publisher: Cengage Learning US
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Chapter 20, Problem 20SE
Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a 2009 base period, January 2011, and March 2011 follow. Base-year quantities are set on the basis of historical volumes for the four stocks.
Use the 2009 base period to compute the Boran index for January 2011 and March 2011. Comment on what the index tells you about what is happening in the stock market.
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If You have this information about return of stock in 3 periods:
-12%, 20% and 25%.
calculate:
The arithmetic average.
The geometric average.
Use the average annual consumer price index table to convert the 1978 minimum wage from actual dollars
to 1996 dollars. Is the result consistent with the entry in the accompanying minimum wage table?
Click the icon to view the table of federal minimum wages.
The 1978 minimum wage in 1996 dollars is $.
(Round to the nearest cent as needed.)
Federal Minimum Wages
Year
1938
1939
1945
1950
1990
1956
1961
1967
1968
pe
1974
1976
1978
1979
1981
1990
1991
1996
1997
2007
2008
2009
Actual Dollars 1996 Dollars
$2.78
$3.39
$3.49
$0.25
$0.30
$0.40
$0.75
90.19
$1.00
$1.25
$1.40
91.00
$1.60
$2.00
22:00
$2.30
$2.50
$2.65
22.0
$2.90
222
$3.35
$3.50
$4.25
$4.75
$5.15
$5.85
$6.55
$7.25
$4.88
67.90
$5.77
$6.41
20.70
$6.58
$7.21
66.27
$6.37
20:37
$6.34
20:20
$6.38
20:30
$6.27
90:20
$5.78
$4.56
$4.90
$4.75
$5.03
$4.42
$4.77
$5.12
-
X
Average Annual
Consumer Price Index (CPI)
(1982-1984 = 100)
Year CPI Year CPI Year CPI
1976 56.9 1989 124.0 2001 177.1
1977 60.6 1990 130.7 2002 179.9
1978 65.2 1991 136.2 2003…
Go to Yahoo!Finance and download data at the MONTHLY frequency for the stock Apple Inc. with ticker AAPL with starting date January 1, 1990 and end date August 4, 2016. Use the ADJUSTED CLOSING PRICE to create the monthly
RETURNS that are the percentage change of the adjusted closing price (NB: make sure to sort first the price from OLDEST TO NEWEST; the percentage return is 100 times the price change between the current and previous month divided by the
price in the previous month).
Based on the time series of the stock return, answer the following questions (NB: you should have 319 monthly returns):
Calculate the sample mean or average of the stock return:
Calculate the sample standard deviation of the stock return:
!!! For the questions below, use the values for the mean and std. dev. that you typed above (only the first 2 decimals)!!!
Assuming that the returns follow a normal distribution:
Calculate the P(return > 2.21):
Calculate the P(-12.37 x) = 0.9704:
Calculate the lower…
Chapter 20 Solutions
Statistics for Business & Economics
Ch. 20.2 - The following table reports prices and usage...Ch. 20.2 - An item with a price relative of 132 cost 10.75 in...Ch. 20.2 - A large manufacturer purchases an identical...Ch. 20.2 - Prob. 4ECh. 20.2 - Under the last-in, first-out (LIFO) inventory...Ch. 20.3 - Price relatives for three items, along with...Ch. 20.3 - The Mitchell Chemical Company produces a special...Ch. 20.3 - Prob. 8ECh. 20.3 - Compute the price relatives for the RB Beverages...Ch. 20.5 - Registered nurses in 2007 made an average hourly...
Ch. 20.5 - The average hourly wage rate for construction...Ch. 20.5 - Shipments of product from manufacturer to the...Ch. 20.5 - Prob. 13ECh. 20.7 - Prob. 14ECh. 20.7 - Prob. 15ECh. 20.7 - An automobile dealer reports the 1994 and 2011...Ch. 20 - Many factors influence the retail price of...Ch. 20 - Prob. 18SECh. 20 - Prob. 19SECh. 20 - Boran Stockbrokers, Inc., selects four stocks for...Ch. 20 - Compute the price relatives for the four stocks...Ch. 20 - Prob. 22SECh. 20 - Seafood price and quantity data are reported by...Ch. 20 - Prob. 24SECh. 20 - The closing price of Apple stock, adjusted for...Ch. 20 - Prob. 26SE
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