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I have uploaded 3 different screenshots. I answered question 1 and 2 and everything else after. However, they play a role in the z score
I have uploaded 3 different screenshots. I answered question 1 and 2 and everything else after. However, they play a role in the z score I believe and I am not sure how to answer the questions that I uploaded on here. My scores are not correct. I have also uploaded the Zscore Table that we are to refer from for the answers.
Background Business Case: The "Hack, Pump, and Dump" Scheme Criminals have discovered yet another way to steal money. They are combining phishing attacks, Trojan horses, and keyloggers to steal identities for use in investment fraud. The scheme works like this. Hackers first gain the personal information of legitimate investors, including names, account numbers, passwords, and PINs. These criminals then hack into the accounts of unsuspecting investors, selling off their holdings in various companies to purchase shares in penny stocks. As they buy the penny stocks, th ce increases (A penny stock is a low-priced, speculative stock of a rt time. he hackers sell the counts. Aleksey Karmardin, for example, used this scheme 14 times to defraud investors of more than $80,000. He and his accomplices allegedly hacked into four legitimate online trading accounts, sold their holdings, and purchased shares in a penny stock. The stock's price went from 26 cents to 80 cents in less than one day. The hackers promptly sold the shares and moved the pro The fraud affects not only investors but also c whose stocks are pumped and then dumped. One firm (Firm X) had its stock price go from 88 cents to $1.28 in one day. The following day, the stock fell to 13 cer broker, restricted online trade on the company's stock. The company's owner had planned to make a large acquisition, but e canceled the purchase. 1Source: Rainer. R. Sons Hoboken, NJ Question 1 4 pts Your Task TD Ameritrade found out you were taking SRA 365 this semester and would like to capitalize on your high quality services! Ameritrade believes that variations in stock prices can help to determine whether or not the company is being pumped and dumped. You have been tasked with developing models that would flag suspicious trading patterns. This is a difficult task because stock prices fluctuate frequently throughout the day. After evaluating the patterns in the stock prices of Firm A, you observe the following fluctuations. Firm A Stock Price Fluctuations Price $0.51 $0.5 $0.63 $0.74 $0.89 $0.91 $1.01 $1.05 $1.12 $1.33 Use Excel spreadsheet from Lesson L01b to calculate and report the following values: Mean - 0.87 Sums of squares = 0.63 Variance = 0.07 Standard deviation = 0.27 NOTE: Please round all values to 2 decimal places. When rounding, remember that you would only add 1 to your second decimal place if your third decimal place is greater than or equal to 5. Question 2 3.5 pts When determining whether or not transactions are fraudulent, Ameritrade has asked that you keep their most recent policy in mind. Ameritrade has instituted a policy in which firms with prices within -68% of the normal distribution of scores are ignored, outside ~68% (but within ~95%) of the normal distribution of scores are monitored, and outside ~95% of the normal distribution of scores are restricted. This policy is based on the most recent fraudulent activities that took place at Firm X. Provide the cutoff values you would use to ignore, monitor, or restrict trade for Firm A based on the recent policy implemented by Ameritrade. Use the numeric values in the following graphic as a guide. HINT: You will need to use the mean and standard deviation from the previous question and the 68-95-99 rule to create these cutoffs. S (a) $ ( b ) S (c) S (d) $_(e)_ S (D) S ( 8 )_ (a): 0.06 (b): 0.33 (c): 0.60 (d): 0.87 (e): 1.14 (f): 1.41 (8): 1.68 Question 3 0.5 pts Given your calculations in the pre e decision you would make (i.e.,Question 8 3 pts Ameritrade decided to relax it's policy and only monitor trades within 90% of the normal distribution of scores. Use the zscore tables &, to provide the z-score that corresponds to the mid-90% of the distribution: Use this z-score to provide the new cutoffs you would use to monitor trades. Lower Limit: Upper Limit: NOTE: Please round your answers to 2 decimal places. Question 9 2 pts Calculate the z-score you would use to determine the probability that the stock price for Firm A will fall below a penny (i.e., $0.01). Complete the blanks below with the values you used in this calculation. Z = NOTE: Please round your final answer to 2 decimal places. Question 10 1 pts Use this z-score and the z-score tables & to determine and report the probability that the stock price for Firm A will fall below a penny (i.e., $0.01). Question 11 2 pts You examine the price fluctuations for Firm B and find that the trades have a distribution with a mean of $1.11 and a standard deviation of 0.36. Calculate the z-score you would use to determine the probability that the stock price for Firm B will fall below a penny (i.e., $0.01). Complete the blanks below with the values you used in this calculation. NOTE: Please round your final answer to 2 decimal places. Question 12 1 pts Use this z-score and the z-score tables & @to determine and report the probability that the stock price for Firm B will fall below a penny (i.e., $0.01). Question 13 1 ptsTAILEA Percentage of Area under the Normal Carve Colauren a shres the distance in standard de 1Nadav 191941 / 3 XICNadavStep by Step Solution
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