Stats Project

1 MTH 2310 Project 1 WI14 9/4/2012

MTH 2310 – Project 1 Our first project will consist of two different case studies that focus on answering questions and identifying relationships in data sets. Data is just a collection of counts and numbers unless we analyze it. We can look for patterns and relationships by putting it into graphs or doing numerical summaries or both. We first start with a question we want answered and then determine which method of analysis will give us the answers. Make sure you follow the process of analysis that our authors use in the textbook. (Process = Plan, Do, and Report) (The accompanying rubric with this project will tell you what I will be looking for as I correct the cases.) Also, make sure that all conditions are meet in order to use the analysis method. In our first case study about value and growth stocks we will consider what might be the better investment in order to maximize our returns. Read the case study, answer the questions they have asked, analyze the data using StatCrunch and then write a professional report based on my criteria. In the second case study about how our economy can affect the stock price of a certain company. We will analyze the relationships asked for in the problem and put our answers in a professional report, again based on my criteria.

1. Case Study chapter 5 p. 121: Value and Growth Stock Returns. Which type of stock is the better value? When you analyze these two types of stock you will want to look at their average return over the whole period. You will also want to look at how volatile these stocks are as measured by the standard deviation. The last item you need to look at is the shape of the distribution of monthly returns. How do they compare? Use these three items in your analysis. This case comes after the chapter discussed various ways of displaying quantitative data so you will want to use some of the charts and concepts discussed to help you answer the questions. Remember, you are trying to look at the advantages and disadvantages of both types of stock to determine which may be the better value.

2. Case Study chapter 6 p. 173: The U.S. Economy and the Home Depot Stock Prices. In this case you will consider how the economy can influence how people see a stock. Home Depot deals with a certain sector (home building and improvement) which may be sensitive to such things as the unemployment rate. You will want to do scatterplots for each of the 4 rates listed and see which one – or all of them – impact the share price of a stock. As you analyze this case, think about how these factors influence your purchasing decisions at places like Home Depot. Use correlation and regression techniques described in chapter 6 when you analyze the data. You will want to use “Closing Price” as the dependent variable and the other 4 as the independent variables.

Note: data sets for both of these cases are found at the StatCrunch tab in MyStatLab. Go to StatCrunch on the left side tab and click on it. You will then see a screen that says “View the data sets from your textbook in StatCrunch.” Click on the link which will take you to the list of chapters. Click on Ch. 5 for the data set for the first case and Ch. 6 for the data set of the second case. Use the rubric to guide you in analyzing the data and answering the questions asked by each case.

2 MTH 2310 Project 1 WI14 9/4/2012

Report Rubric Gateway Criteria Only graded after it meets this criteria. If any of these gateway criteria are

not met, your project will not be accepted until they are. Profession presentation – word processed, neatly formatted, stapled or in a folder College level writing with ESWE (Edited Standard Written English – no more than 3 errors

per page.) Information is presented in effective order. Excellent structure of paragraphs and

transitions enhances readability and understandability. Grading Criteria for Project Point

Possible Your

points Project is organized using the process – separate one for each case

Plan 5 per case

• Objective is clearly defined • Introduction and background well written. Introductory paragraph is clearly

stated, has a sharp, distinct focus and enhances the impact of the report

Do 10 per case

• Patterns in data identified and related to case study questions. Outliers are identified if they exist.

• Appropriate statistical techniques used for analyzing data and identifying the center, shape and spread.

• Graphs are clear, complete, concise, with context labeled

Report 5 per case

• Conclusion well written. Concluding paragraph summarizes and draws a clear, effective conclusion and enhances the impact of the report

• All questions answered from the case. • Conclusion is written for the audience using the report.

Total - for both cases 40