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##### Computer Project Two Fall 2014

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Question;Computer Project TwoFall 2014Due Date: October 17th (at 10:00 AM)Points Possible: 30Self-selected groups oftwo students will work together to collect, enter, and analyze stock prices from data collected from the online website,www.barrons.com (click on theStock & Fund Tables link in the Market Data tab). As a group, use the physical mixing techniques discussed in class to generate asimplerandom sample of 70 stocks with the following constraints:1.Randomly select 50 stocks from the New York Stock Exchange?T? column (stocks that begin with?T?).2.Randomly select 20 stocks from the NASDAQ?R? column (stocks that begin with?R?).For each stock, record the Company name as shown in the paper (create a variable calledNAME with at least 15 letters of the company name), the current stock price (called ?Close? in the Barrons tables) (create a variable calledCLOSE), the previous 52-week high price (create a variable calledHIGH), the previous 52-week low price (create a variable calledLOW), and the exchange that the stock is traded on (create a variable calledEXCHANGE that is0 if NYSE and1 if NASDAQ). Enter the stock prices that you collect to two decimal places as provided in the Barron?s listing. Enter the stocks selected from both exchanges into a single data set.The following two pages should be printed and filled out and handed in during class on the due date listed above. Attach the specified printouts to the back of the project that you turn in.Please note, only one project per group should be handed in. Each group member will get the same grade for the project.Projects can be turned in to QMB 2100 Lab in CIS 2004 anytime they are open. The project is due by 10 AM on Friday,October 17th.Group Member NameStudent NumberSection (TR 11, TR 12:30, M Night, or T Night)Directions: Fill in the answer to the questions posed below. Attach the specified printouts where indicated and turn in during class (or to the stat lab in CIS 2004) on or before the due date posted at the top of this project.Please give specific interpretations as generic answers will not receive full credit.1.Copy and paste a printout for a 97% confidence interval for the meanhigh price of all stocks on both theNYSE and NASDAQ exchanges (you will show one confidence interval for all 70 stocks) in the space provided below.Answer the following questions regarding this printout:a.In thewords of the problem, give a practical interpretation of this interval.b.Give a theoretical interpretation of the interval (i.e., explain what we mean when we say we are ?97% confident.?2.Copy and paste a 93% confidence interval for the meanclosingprice of all stocks on theNASDAQ exchange in the space provided.Answer the following questions regarding this printout:a.What assumptions are necessary for this confidence interval to be valid? Make sure you use thewords of the problemwhen stating this assumption.b.Suppose I claim that the mean closing price of all NASDAQ stocks was $17.50. Based on the interval you created, make a statement regarding my claim.3.Create a normal probability plot and stem-and-leaf plot for the 70low prices observed in your data set.a.Do the plots indicate that the low prices are normally distributed? Why or why not?b.Find the mean and standard deviation for the 70low prices in your sample and provide the printout below. Use these values as estimates of the mean and standard deviation found in the population of all low prices. Suppose that the low prices were normally distributed (regardless of what your plot indicated in part a). Find the proportion of all low prices that would be between $15 and $60 in the population. I want you to show your work. To receive full credit, you should include pictures of the normal curve (labeled with both x and z-values) with the pertinent probabilities shaded in the picture.4.Use the values found in the last problem as the mean and standard deviation of the population of all low prices. Find the probability that in a sample of 100 stocks, theaverage low price in the sample would exceed $25.00. To receive full credit, you should include pictures of the normal curve (labeled with both and z-values) with the pertinent probabilities shaded in the picture.

Paper#54002 | Written in 18-Jul-2015

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