Capstone Project - Business Statistics

CAPSTONE PART #2

ESTIMATING THE MEAN STOCK PRICE/TESTING FOR GROWTH

Company: _____________

Stock symbol: __________

1. Time period: From 9/1/2012 to 8/31/2013 Interval: Weekly

Sample mean: ________

Sample standard deviation: __________

Number of weeks (sample size):________

95% confidence interval: [ _____________, _____________ ]

2. Time period: From 9/1/2013 to 8/31/2014 Interval: Weekly

Sample mean: ___________

Sample standard deviation: ____________

Number of weeks (sample size): _____________

95% confidence interval: [ _____________, _____________ ]

3. Time period: From 9/1/2014 to 8/31/2015 Interval: Weekly

Sample mean: _____________

Sample standard deviation: _______________

Number of weeks (sample size):_____________

95% confidence interval: [ _____________, _____________ ]

Which method should you use for the above calculations: Z-Interval T-Interval

Comparing the confidence intervals year to-year, what conclusions can you draw about the growth of your stock?

4. Estimate of population mean & standard deviation:

Time period: From 09/01/12 to 8/31/2015 (last three years – use this as an estimate of the population mean and standard deviation)

Interval: Weekly

Population mean: ___________

Population standard deviation: ____________

5. Sample of last month:

Time period: From 8/1/2015 to 8/31/2015 Interval: Daily

Sample mean: _____________

Sample standard deviation: _____________

Days (sample size): ______________

6. Test to see if the population mean has changed, at the .10 level of significance, based on the sample:

Null hypothesis: ____________________________

Alternative hypothesis: ____________________________

Critical value: ___________

Test statistic: ___________

p-value: _________

Decision: ____________________________________________

What conclusions can you draw about the population mean price based on the hypothesis test?