Assignment 1 - Producing and Interpreting Descriptive Statistics
Activity Instruction
For this practical application assignment, you will download five years of daily adjusted closing price and volume data from Yahoo Finance (or another site of your choosing) and perform a descriptive analysis. You will be using this data for four modules in this course.
1 Go to Yahoo! Finance, linked in Resources.
2 Find a stock beginning with the first letter of your last name. For example, if your last name begins with F, you might choose Ford.
3 Search your chosen stock. When you find it, click on the Historical Data tab to access historical stock price.
4 Gather five years of daily adjusted stock price data by selecting the appropriate dates through the Time Period link. Be sure the end date includes days in this course.
5 Click on the Download Data link to save the data to your computer. The file will be saved so that it can be opened in Excel.
Conduct a descriptive analysis by doing (at a minimum) the following:
1 Calculate the mean, median, mode, range, and standard deviation of the adjusted daily closing price for this stock. Interpret these statistics and discuss their relevance. Is the mode useful? Why or why not?
2 Produce a histogram for the adjusted daily closing price. Be sure you have enough bins, so that you can see the shape of the data. Describe the shape of the data. What does this tell you about the stock?
3 Produce a boxplot for the adjusted daily closing price. Interpret it. Note: this may be problematic for some of you who are using Excel. You may produce it manually if you cannot generate it automatically.
4 Produce a time plot (scatter plot) of the closing date versus the stock price. How has the stock trended over time? Are there patterns?
5 Summarize what descriptive analysis revealed about the adjusted daily closing stock price.
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.
Assignment 2
For this assessment, you will need to use SAS Enterprise Guide or the Excel Calculators, the latter of which can be found in Resources. SAS users can reference the SAS tutorials located in the third study activity of Assignment 1. For this assignment, you will practice applying inferential statistical analysis to two business decision scenarios. Complete both following scenarios.
Practical Application Scenario 1
Refer to the stock you selected in Module 1. Using the same downloaded data, build a 95 percent confidence interval for the daily stock volume using your downloaded data. What does this confidence interval mean? Why might decision makers be interested in such an interval?
Practical Application Scenario 2
To complete this scenario, use the Sample Size Estimator file provided in Resources.
For the stock you selected in Module 1, what size sample would you need to bracket the adjusted daily closing price within 50 cents (for example, a margin of error of 50 cents)? Use the standard deviation from your data for your calculations, and assume this standard deviation represents the population standard deviation.
Assignment Submission
You must submit two documents. First, you must compile all 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 zero on the assignment until the file is submitted. Submit your report to the assignments area for grading. Please note that assignments must be submitted to the assignments area for grading.
Assignment 3
Hypothesis Testing Using One Sample
Resources
For this practical application assignment, you will use the daily adjusted closing price data you downloaded in Module 1. You may use the Hypothesis Tester - Single Sample document, linked in Resources, to complete both scenarios. You may also want to review the SAS One Sample T-Test tutorial, also located in the Resources.
Practical Application Scenario 1
Often, it is interesting to know whether mean adjusted closing prices have changed from some base value. Suppose you are interested in whether the mean adjusted daily closing price for the stock you downloaded in Module 1 has increased from some base price (for example, $4 or $10 or . . .). For our purposes, we will assume that you are interested in whether the mean daily adjusted closing price has increased from the oldest daily adjusted closing price in your dataset (for example, the one from five years ago). Conduct a hypothesis test that the mean adjusted daily closing price has increased from the base price. Assume that the stock price is sufficiently normal to conduct a t-test. Note: you might also transform the stock to normality, that is, applying the natural logarithm.
To successfully complete this hypothesis test, do the following:
1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually, use the Hypothesis Tester - Single Sample file, provided in Resources, or use the SAS Enterprise Guide. You may also use the Hypothesis Tester multimedia piece provided in Resources to review the process for this equation.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. For this scenario, write a three-sentence paragraph that details why you can be statistically confident that the mean household Playbill reader's income has increased, decreased, or remained the same, and what would happen if alpha was .01.
5. Would the results of your hypothesis test be different if you used a Z-test rather than a t-test? Why or why not?
Practical Application Scenario 2
To explore your stock dataset, you decide that you want to know whether your stock's mean daily volume has increased or decreased from the oldest closing value in your data set (in other words, the closing volume from five years ago). Often, you would conduct a test like this with two samples, but for now, we will just use the oldest closing value as the baseline. Conduct a hypothesis test to see if the mean daily volume differs from the oldest daily volume in your dataset. Complete the following.
1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually: use the Hypothesis Tester - Single Sample file provided in Resources, or use the SAS Enterprise Guide. You may also use the Hypothesis Tester multimedia piece provided in Resources to review the process for this equation.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. For this scenario, write a three-sentence paragraph that details why you can be statistically confident that the mean household Playbill reader's income has increased, decreased, or remained the same, and what would happen if alpha was .01.
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.
Assignment 4
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 using Date as the variable for pairing. To complete this analysis, do the following:
1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually, use the Hypothesis Tester - Single Sample file provided in Resources, or use the SAS Enterprise Guide. You may also use the Hypothesis Tester multimedia piece provided in Resources to review the process for this equation.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. For this scenario, write a three-sentence paragraph that details why you can be statistically confident that the mean household Playbill reader's income has increased, decreased, or remained the same, and what would happen if alpha was .01.
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.
1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually, use the Hypothesis Tester - Single Sample file provided in Resources, or use the SAS Enterprise Guide. You may also use the Hypothesis Tester multimedia piece provided in Resources to review the process for this equation.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. For this scenario, write a three-sentence paragraph that details why you can be statistically confident that the mean household Playbill reader's income has increased, decreased, or remained the same, and what would happen if alpha was .01.
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.
1. State the null and alternative hypotheses via both an explanation and a math equation.
2. Identify the appropriate statistical test. State this clearly.
3. Conduct the test and state whether to accept or reject the null hypothesis using the p-value and an alpha of .05. You may solve the equation manually, use the Hypothesis Tester - Single Sample file provided in Resources, or use the SAS Enterprise Guide. You may also use the Hypothesis Tester multimedia piece provided in Resources to review the process for this equation.
4. Report the rejection or acceptance of the null in terms of the scenario results using laymen's terms. For this scenario, write a three-sentence paragraph that details why you can be statistically confident that the mean household Playbill reader's income has increased, decreased, or remained the same, and what would happen if alpha was .01.
Assignment 5
Data Gathering and Analysis
Resources
For this assignment, you will examine the use of qualitative data for a business scenario.
Review Cooper and Schindler's 2008 article, "Starbucks, Bank One, and Visa Launch Starbucks Card Duetto Visa," located in Resources, and address the following components in your assignment:
- Answer discussion questions 2 and 4 at the end of the case.
- Describe any ethical issues that should concern Starbucks about this initiative.
- Summarize the use of qualitative data to support business decision making. Consider different types of qualitative data collection and analysis methods and the ways in which they can support business decision making and strategies.
Assignment Submission
Create all of your answers in a single Microsoft Word file (submitted as a .docx file). Be sure to include graphs or tables where helpful and make sure all of your final answers address all parts of this scenario.
Submit your report to the assignments area for grading. Please note that 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.
Assignment 6
Case Analysis and Report
Resources
Access the Uniform Crime Reporting Statistics Web site, linked in Resources. Select the state in which you were born or one in which you live now. If you are an international student, choose a state which interests you. Download all available data for the number of violent crimes, number of property crimes, violent crime rates, and property crime rates for the years 1960 through 2012.
Practical Application Scenario
Using the data, provide an analysis of the data set to include the following:
1. Provide overall descriptive statistics including measures of center (mean, median, and mode where appropriate) and dispersion (standard deviation, variance, and range). Provide one example of each of the following graphs: histogram and boxplot. Provide a scatterplot of violent crimes by year as well as property crimes by year. Interpret all statistics and graphs.
2. Build a 95 percent confidence interval for the mean murder and non-negligent manslaughter rate. Interpret it.
3. Conduct a hypothesis test to see if the mean property crime rates for 1960 through 1981 (collectively) are different from the mean property crime rates from 1982 through 2012 (collectively).
4. What, if any, ethical issues should concern you in conducting your research?
Complete your report in a Word document (submitted as a .docx file), including relevant tables and graphics you need to support your findings. Place your tables and graphics within the text and be sure to clearly title them. Your tables and graphics must be legible and suitable for inclusion in a management report.