Question

5. Find the mean and standard deviation for the stock prices of each company. Describe the type of investor who should consider buying Orange Computer instead of General Car’s stock.

              Orange            General Car

              Computer         Company

              Stock Price      Stock Price

              40                    40

              42                    39

              38                    40

              52                    43

              36                    43

              40                    45

              48                    46

              50                    50

Answer 1

	Orange Computer stock
	X	X-Mean	(X-mean)^2
	40	-3.25	10.5625
	42	-1.25	1.5625
	38	-5.25	27.5625
	52	8.75	76.5625
	36	-7.25	52.5625
	40	-3.25	10.5625
	48	4.75	22.5625
	50	6.75	45.5625
Sum	346	Sum	247.5
Mean	43.25
Std	5.95
	General car stock
	X	X-Mean	(X-mean)^2
	40	-3.25	10.5625
	39	-4.25	18.0625
	40	-3.25	10.5625
	43	-0.25	0.0625
	43	-0.25	0.0625
	45	1.75	3.0625
	46	2.75	7.5625
	50	6.75	45.5625
Sum	346	Sum	95.5
Mean	43.25

Std=3.69324

Mean:

Standard deviation:

Orange computer sock has higher standard deviation. So, it helps to gain more profits.