Assessment 4: Presenting Data Analysis Results Effectively

Running Head: IBM STOCK PRICE ANALYSIS

IBM STOCK PRICE ANALYSIS

Capella University

13 May 2021

IBM STOCK PRICE ANALYSIS 2

IBM is an abbreviation for the international business machine, and it is a multinational

company whose headquarters are located in New York City. The company was founded in then

1911 under a different name; the initial name was the computing-tabulating recording company,

which the company dealt with computer-related services and goods. It sold middleware,

software, and hardware. Additionally, the company has a section specifically for cloud hosting

and consulting services. For about 28 consecutive years, IBM has held the record for most US

patents by a business. The automated teller machine was the creation of IBM. Among other

inventions include the hard disk drive and floppy disk. Over the years, the company has been

shift business to focus on a more profitable market and higher value items. It has acquired other

companies such as PwC Consulting (Pugh, 2015).

This company is not only F500 but also one of the top 30 companies doing very well in

the US market. It has branches in almost 170 countries all over the world. As of the year 2020,

the company recorded annual revenue of $ 73.6 billion. It is unfortunate because, over the last

nine years, the profit has dropped by about eight years. It has been criticized for not using the

long-term investment technique; instead has used financial engineering.

This is one of the most valuable companies in the world of computing since it has

invested heavily in research and development, which has been paying handsomely. Through

research and development, the worlds hope that more advanced hardware and software can be

developed to solve problems. Power inadequacy, for instance, has plagued the world for a very

long time.

IBM STOCK PRICE ANALYSIS 3

Scatter plots

This was created in a simple manner. The date column was selected as well as the low queue.

Then on the Insert tab, a scatter plot was selected on the chart section. The x and y-axis were

labeled accordingly (Pishro-Nik, 2014).

This is a similar manner to that of the low. The date column was selected as well as the high

column. Then on the Insert tab, a scatter plot was established on the chart section. The x and y-

axis were labeled by clicking the graph to produce a window. From that window, axis time was

Low

pr ic

es

0

37.5

75

112.5

150

dates 4/20/2024 7/23/2024 10/25/2024 1/27/2025 5/2/2025

High

pr ic

e

0

37.5

75

112.5

150

date 4/20/2024 7/23/2024 10/25/2024 1/27/2025 5/2/2025

IBM STOCK PRICE ANALYSIS 4

checked. Then on the graph, the “axis title” was replaced with price and date for the x and y-axis,

respectively. The title could be changed, but it was labeled automatically (Lind, Marchal, &

Wathen, 2019).

Histogram

Making a histogram is a simple process. It can either be done manually or automatically. Either

of the methods produces histograms that are desirable. However, the manual method gives one

room to control parameters, such as the number of classes included. There is a challenge, though.

Selecting the bins presents a severe problem because of the data distribution. Several trials give

one enough experience to choose the correct upper and lower limits correctly.

In this case, I looked for the difference between the maximum and minimum values. The

difference is divided by the selected number of classes. I chose six levels with equal intervals.

So, the quotient of the difference and the number, of course, are added to the minimum values.

For the ad close, the following figure was obtained (Pishro-Nik, 2014).

The upper-class limit and the frequency is as follows;

Histogram Adj Close

Fr eq

ue nc

y

0 35 70

105 140

103.739372

110.4894775 137.4898995

Frequency

Upper class limit Frequency

IBM STOCK PRICE ANALYSIS 5

The volume histogram is as follows;

110.4895 7

117.2396 57

123.9897 123

130.7398 38

137.4899 17

144.24 9

More 0

Histogram

Fr eq

ue nc

y

0 30 60 90

120

1761100

3576220 10836700 18097180

Frequency

1761100 Frequency

3576220 47

5391340 114

7206460 50

9021580 22

10836700 7

12651820 4

14466940 2

16282060 2

18097180 0

38063500 3

More 0

IBM STOCK PRICE ANALYSIS 6

The process of making this histogram was as follows. The maximum value and minimum

value were evaluated, and their difference found. The difference was then divided by the number

of class of classes desired. This was to give the class interval needed. This was how the volume

histogram was created. This histogram, however, did not have an equal break because the values

were not normally distributed.

Descriptive statistics

The above measure of central tendency was calculated using the inbuilt function. First

was the mean. The mean could be obtained by using the function =average(f2:f253) where f2

was the cell where the first value of ad close was located and f253 was the cell where the last

value of adj close was located. The model was obtained using the function “=mode(f2:f253)”.

The standard deviation and the median were calculated using inbuilt function as well,

“ =stdev(f2:f253)” and “=median(f2:f253)” respectively (Deep, 2016).

ad close

mean 121.5773

median 120.8268

mode 121.98

standard deviaAon

7.08524

Volume

mean 121.5773 5499449

median 120.8268 5501735

mode 121.98 5507671

IBM STOCK PRICE ANALYSIS 7

As for the volume, mean, median, mode and standard deviation were calculated using =

average(g2:g253), “=median(g2:g253)”, “=mode(g2:g253)”, and “=stdev(g2:g253)”

respectively. Those formula could calculate the values automatically. However, the manual

method could also get employed only that a lot of time would be required.

standard deviaAon

7.08524 5514130

IBM STOCK PRICE ANALYSIS 8

References

Pugh, E. W. (2015). Building IBM: Shaping an industry and its technology. MIT Press:

Cambridge, Mass.

Pishro-Nik, H. (2014). Introduction to probability, statistics, and random processes.

Deep, R. (2016). Probability and statistics with integrated software routines. Burlington,

MA: Academic Press.

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2019). Basic statistics for business

and economics (9th ed.). New York, NY: McGraw-Hill