Your friend is thinking about buying shares of stock in a company. You have been
ID: 3124853 • Letter: Y
Question
Your friend is thinking about buying shares of stock in a company. You have been tracking the closing prices of the stock shares for the past 90 trading days. Which type of graph for the data, histogram or time-series, would be best to show your friend? Why?
A time-series graph because the pattern of stock prices over time is more relevant than the frequency of a range of closing prices. A histogram because the pattern of stock prices over time is less relevant than the frequency of a range of closing prices.
A histogram because the pattern of stock prices over time is more relevant than the frequency of a range of closing prices.
A time-series graph because the pattern of stock prices over time is less relevant than the frequency of a range of closing prices.
Explanation / Answer
Whenever data are measured over time forming a time series ,it should be plotted in sequence .
Omitting such time series graph omits the study of dependence of data over the time.
Thus answer is time series plot as pattern of stock prices over the time is more relevant than frequency of range of closing prices.
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