Question

Suppose you are given the following end of year stock price data for Random Inc. stock.  Assume...

Suppose you are given the following end of year stock price data for Random Inc. stock.  Assume the returns are normally distributed, calculate the lower bound of the 68% confidence interval.  (Enter percentages as decimals and round to 4 decimals).


Year Price
2005 43.65
2006 44.01
2007 45.77
2008 53.04
2009 45.67
2010 59.05
2011 46.88
2012 49.24
2013 43.99
2014 42.67
2015 48.14
Math   Statistics-And-Probability   
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Answer #1

mean of the sample= =(1/11)*(43.65+44.01+45.77+....+48.14)

=522.11/11

=47.4645

variance =

=1/11{(43.65-47.4645)^2 +(44.01-47.4645)^2+ ...+(48.14-47.4645)^2}

=1/11(14.5504+11.9336+2.87133+31.1086+3.2202+134.2238+0.3416+3.1524+12.0721+22.9872+0.4563)

=236.9145/11

=21.5380

standard deviation =s=4.6409

lower bound for 68% confidence interval

=47.4645-1.0* 1.3993 (z value for 68% confidence interval is 1.0)

=46.0652

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