Question

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, $0.55, $0.63, $0.74, $0.89, $0.91, $1.01, $1.05, $1.12, $1.33

What is the mean, sum of squares, variance, and standard deviation?

Answer 1

Price $0.51, $0.55, $0.63, $0.74, $0.89, $0.91, $1.01, $1.05, $1.12, $1.33

Mean,

= (0.51+0.55+...+1.12+1.33) / 10

= 8.74 / 10 = 0.874

Sum of squares,

= ( 0.51-0.874)2 + ( 0.55 - 0.874)2 + ....+(1.12 - 0.874)2 + (1.33-0.874)2

= 0.634

Variance,

= 0.634/10 = 0.063

Standard deviation,

= 0.252

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