13. HW 3 Monthly stock prices for two competing firms are as follows. Calculate
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13. HW 3
Monthly stock prices for two competing firms are as follows.
Calculate the sample mean, sample variance, sample standard deviation and sample coefficient of variation for each fund.(Round your answers to 2 decimal places.)
Which firm's stock price had greater variability as measured by standard deviation?
Monthly stock prices for two competing firms are as follows.
Month Firm A Firm B January $28 $21 February 31 24 March 32 24 April 35 27 May 34 25 June 28 20Click here for the Excel Data File
a.Calculate the sample mean, sample variance, sample standard deviation and sample coefficient of variation for each fund.(Round your answers to 2 decimal places.)
Firm A Firm B Mean $ $ Variance $ $ Standard deviation $ $ Coefficient of Variation $ $ b. Which firm had the higher stock price over the time period? Firm A Firm B c-1.Which firm's stock price had greater variability as measured by standard deviation?
Firm A Firm B c-2. Which firm's stock price had the greater relative dispersion? Firm A Firm BExplanation / Answer
(a) For Farm A, sample mean = 31.33
Sample standard deviation = 2.94
Sample variance = 8.67.
Sample coefficient of variation = standard deviation / mean = 0.09.
For Farm B, sample mean = 23.5.
Sample standard deviation = 2.59.
Sample variance = 6.7.
Sample co-efficient of variation = 0.11
(b) Since sample mean of Farm A is higher, Farm A has higher stock price over time.
(c-1) Since, Farm A's standard deviation is higher it has got higher variability than Farm B.
(c-2) Since farm B's coefficient of variation is higher it's relative dispersion is greater than Farm A.
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