Question

1.    If a person bought 1 share of Google stock within the last year, what is

the probability that the stock on that day closed at more than $750? (5 points)

2.    If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed within $75 of the mean for that year? (5 points)

3.    Suppose a person within the last year claimed to have bought Google stock at closing for $650 per share. Would such a price be considered unusual? Use the definition of unusual from the course textbook. (5 points)

4.    At what prices would Google have to close in order for it to be considered statistically unusual? You will have a low and high value. Use the definition of unusual from the course textbook that is measured as a number of standard deviations. (5 points)

5.    What are Quartile 1, Quartile 2, and Quartile 3 in this data set? Use Excel to find these values. This is the only question that you must answer without using anything about the normal distribution. (5 points)

6.    Is the normality assumption that was made at the beginning valid? Why or why not? Hint: Does this distribution have the properties of a normal distribution as described in the course textbook? Real data sets are never perfect, however, it should be close. One option would be to construct a histogram like you did in Project 1 to see if it has the right shape. Something in the range of 10 to 12 classes is a good number. (5 points)

Use dates July 3, 2017-August 25, 2017

 

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