Probabilities

 

Project 3 instructions

 

 

 

Based on Larson & Farber: sections 6.1–6.3

 

 

 

Go to this website. Click the link on the right that says, “Download to Spreadsheet.” Set the date range to end on the first day (Tuesday) of Module/Week 5 and going back exactly 1 year. Assume that the closing prices of the stock form a normally distributed data set. Do not manually count values in the data set, but use the ideas found in sections 5.2–5.3. Answer the following:

 

 

 

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 less than the mean for that year?

 

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 at more than $500?

 

3.      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 $45 of the mean for that year?

 

4.      Suppose a person within the last year claimed to have bought Google stock at closing at $400 per share. Would such a price be considered unusual? Explain.

 

5.      At what price would Google have to close at in order for it to be considered statistically unusual? You should have a low and high value.

 

6.      What are Q1, Q2, and Q3 in this data set?

 

7.      Is the assumption that was made at the beginning valid? Why or why not?

 

 

 

Submit your work through the assignment link by 11:59 p.m. (ET) on Monday of Module/Week 5.