Comparing Populations Using Statistical Inference
Resources
For this assignment you will practice applying statistical inference to business decision scenarios.
Practical Application Scenario 1
Using the Yahoo Finance Web site as in Module 1 download a separate five years of daily data for a stock that begins with the first letter of your first name this time. Be sure that you match the exact dates that you used for the initial stock data so that you can combine the spreadsheets by pasting.
Now you are interested in seeing if the mean daily closing volume of the two stocks are statistically different when accounting for daily volatility of the market. In other words you want to conduct a matched t-test usingDateas the variable for pairing. To complete this analysis do the following:
You will need to use Excel or SAS to complete this test.
Practical Application Scenario 2
Now use only the original stock data those data associated with the first letter of your last name. You are interested in whether the mean daily adjusted closing price for the last three years has increased from the mean daily closing price of the first two years. Conduct a hypothesis test by doing the following.
You will need to use Excel or SAS to complete this test.
Practical Application Scenario 3
You are interested in knowing whether there are differences in the mean daily adjusted closing price for a specific stock. For this practical application go back to Yahoo! Finance and download five-years of monthly data for the stock beginning with the first letter of your last name. To do so simply requires you to change the frequency to monthly. Then conduct a test to see whether there are monthly differences in the mean adjusted closing prices.
Assignment Submission
You must submit two documents. First you must compile all of your answers in a Microsoft Word file pasting in the tables and graphics you created to demonstrate your work (submitted as a .docx file). Second you must upload the raw data (as a .csv file) that you used to do your analysis for the purposes of instructor replication. Failure to upload the second file will result in a score of zero on the assignment until the file is submitted. Assignments must be submitted to the assignments area for grading. Work e-mailed or otherwise presented cannot be graded in accordance with Capella grading standards. Because of the nature of statistics-based assignments your instructor cannot give feedback on drafts of your work. Instead if you have questions as you complete assignments you are encouraged to attend the weekly supplementary instruction sessions or to consult the archived sessions for suggestions. Refer to the scoring guide prior to submission to ensure you meet all evaluation criteria.