Computer Project Three Spring 2017 Due Date: April 19th (at 6:00 PM) Points Possible: 40 Self-selected groups of two students will work together to collect, enter, and analyze stock prices from data collected from the online website, www.barrons.com (click on the Stock & Fund Tables link in the Market Data tab). As a group, use the physical mixing techniques discussed in class to generate a simple random sample of 60 stocks with the following constraints: 1. 2. Randomly select 40 stocks from the New York Stock Exchange \"C\" column (stocks that begin with \"C\"). Randomly select 20 stocks from the NASDAQ \"A\" column (stocks that begin with \"A\"). For each stock, record the Company name as shown in the paper (create a variable called NAME with at least 15 letters of the company name or the ticker symbol), the current stock price (called \"Close\" in the Barrons tables) (create a variable called CLOSE), the previous 52-week high price (create a variable called HIGH), the previous 52-week low price (create a variable called LOW), and the exchange that the stock is traded on (create a variable called EXCHANGE that is 0 if NYSE and 1 if NASDAQ). Enter the stock prices that you collect to two decimal places as provided in the Barron's listing. Enter the stocks selected from both exchanges into a single data set. The following two pages (do not print this page) should be printed and filled out and handed in during class on the due date listed above. Attach the specified printouts to the back of the project that you turn in. Please note, only one project per group should be handed in. Each group member will get the same grade for the project. Projects can be turned in to QMB 2100 Lab in CIS 2004 anytime they are open. The project is due by 6 PM on Wednesday, April 19th. Group Member Name Student Number Qihang Zhou U11707581 Section (MW 3:30, MW 5:00, M Night, or T Night) Directions: Fill in the answer to the questions posed below. Attach the specified printouts where indicated and turn in during class (or to the stat lab in CIS 2004) on or before the due date posted at the top of this project. Please give specific interpretations as generic answers will not receive full credit . 1. Create the printout for testing whether the mean low stock price of all NYSE stocks differs from $20 and attach it here. Answer the following questions regarding this printout: One-Sample T Test Null Hypothesis: = 20 Alternative Hyp: 20 Variable Low Mean 55.955 Cases Included 40 SE 15.792 T 2.28 DF 39 P 0.0284 Lower 95% C.I. 24.012 Upper 95% C.I. 87.898 Missing Cases 0 a. Use the z-table and the test statistic found on the printout to show how the p-value is found. (Note: Your answer will be slightly different than the value shown on the printout as Statistix uses the t-table instead of the z-table). To receive full credit, you should include the test statistic and the pertinent probabilities shaded in the picture. T=2.28 b. In the words of the problem, give a practical conclusion for this test. Make sure to include your choice of in this conclusion. At = 0.05, we reject Ho. There is sufficient evidence to indicate that the mean low stock price of all NYSE stocks differs from $20. c. In the words of the problem, state what a Type I error would be. 2. Create the printout for testing whether the mean current stock price of all NASDAQ stocks exceeds from $9.75 and attach it here. Answer the following questions regarding this printout: One-Sample T Test Null Hypothesis: = 9.75 Alternative Hyp: > 9.75 Variable Close Mean 50.487 Cases Included 20 SE 7.7741 T 5.24 DF 19 P 0.0000 Lower 95% C.I. C.I. 37.045 Missing Cases 0 a. State the assumption necessary for this printout to be valid. The 52-week current stock prices of all NASDAQ stocks exceeding $9.75 is a random sample and the sample selected has a distribution that is approximately normal. b. State the null and alternative hypotheses that we would use to determine if the mean 52-week current stock price of all NASDAQ stocks exceeds $9.75. Ho: = 50.487 Ha: 50.487 c. In the words of the problem, give a practical conclusion for this test. Make sure to include your choice of in this conclusion. At = 0.05, we reject Ho. There is sufficient evidence to indicate that the mean 52-week current stock price of all NYSE stocks exceeds from $20. 3. Create the printout for testing whether the mean closing price of all NYSE stocks differs from the mean closing price of all NASDAQ stocks and attach it here. Answer the following questions regarding this printout: Two-Sample T Tests for Close by Exchange Exchange 0 1 Difference N 40 20 Mean SD 44.743 99.674 50.487 34.767 -5.7437 84.121 SE 15.760 7.7741 23.038 T-Tests for Mean Difference Null Hypothesis: difference = 0 Alternative Hyp: difference 0 Method Variances DF Pooled Equal 58 Satterthwaite Unequal 53.8 T -0.25 -0.33 Lower P 95% C.I. 0.8040 -51.858 0.7451 -40.979 Homogeneity of Variances Folded F Test DF 39,19 F 8.22 Cases Included 60 Upper 95% C.I. 40.371 29.492 P 0.0000 Missing Cases 0 a. State the assumptions necessary for this printout to be valid. (You don't need to state that the samples were randomly and independently selected. We know that they were from part 1 of the project!) The mean closing price of all NYSE stocks are approximately normally distributed. b. Use the confidence interval to make a statement regarding the relationship between the population means. Make sure to include your confidence level in your statement. 4. Using the entire data set of 60 stocks, count up the number of stocks in your data that have a low stock price that is at least $10. State this value here: 55. Verify this by copying the stem-and-leaf display for the low prices below. Stem and Leaf Plot of Low Leaf Digit Unit = 10 6 3 represents 630 Depth (45) 15 4 2 1 1 1 1 1 1 1 1 1 Stem 0 0 1 1 2 2 3 3 4 4 5 5 6 Minimum Median Maximum 2.6000 26.885 639.67 Leaves 000001111111111111222222222222222233333333344 55556677888 02 5 3 60 cases included 0 missing cases a. Suppose it is desired to determine if the true percentage of all stocks that have low prices that are at least $10 differs from 40%. Is the sample size large enough to conduct this test? Why or why not? Show your calculations for full credit! b. Use the table on the next page to locate the number of your stocks with low prices of at least $10 in your sample. Use the table to locate the Test Statistic that you should use for this test and write it here: Test Statistic: 8.16922 c. Give the rejection region for this test (you choose an acceptable level for ). d. In the words of the problem, give a practical conclusion for this test. Make sure to include your choice of in this conclusion. Number > $10 Test Statisti c Number > $10 1 -6.061 15 2 5.7975 16 3 -5.534 17 4 5 6 7 8 9 10 11 12 13 14 5.2705 5.0069 4.7434 4.4799 4.2164 3.9528 3.6893 3.4258 3.1623 2.8988 2.6352 18 19 20 21 Test Statisti c 2.3717 2.1082 1.8447 1.5811 1.3176 1.0541 0.7906 Number > $10 29 30 31 32 33 34 35 22 -0.527 36 23 0.2635 37 24 0 38 25 26 27 28 0.2635 2 0.5270 5 0.7905 7 1.0540 9 39 40 41 42 Test Statisti c 1.3176 2 1.5811 4 1.8446 6 2.1081 9 2.3717 1 2.6352 3 2.8987 5 3.1622 8 3.4258 3.6893 2 3.9528 5 4.2163 7 4.4798 9 4.7434 2 Number > $10 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Test Statisti c 5.0069 4 5.2704 6 5.5339 9 5.7975 1 6.0610 3 6.3245 6 6.5880 8 6.8516 7.1151 2 7.3786 5 7.6421 7 7.9056 9 8.1692 2 8.4327 4 Number > $10 57 58 59 60 61 62 63 64 65 Test Statisti c 8.6962 6 8.9597 9 9.2233 1 9.4868 3 9.7503 6 10.013 9 10.277 4 10.540 9 10.804 4 66 11.068 67 11.331 5 68 11.595 69 70 11.858 5 12.122 1 Locate the number of stocks in your sample that have a low stock price that is at least $10. Use the column to the right of that number to identify the Test Statistic you would use for the desired test of hypothesis. Use this Test Statistic in part 4b