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Sta2023 Assignment

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Statistics
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Homework
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Assignment 1
An investor needs to compare two stocks earnings in order to decide about further decisions in financial
planning. For that reason, the “side by side” box plot of both stocks earnings is given below.
1) Determine which stock has higher central 50% of the earnings.
For gold returns, the median is approximately 3.5 while for silver, the median is
approximately 1.75. The Gold stock therefore has higher central 50% earnings than the
silver stock
2) Determine from the display the five numbers summary of each stock earnings.
Approximates based on the graph are:
Gold stock:
Minimum: 2
1
st
quartile: 3
Median: 3.25
3
rd
Quartile: 3.75
Maximum: 4.5
Silver Return %
Gold Returns %
6543210-1-2-3
Data
Boxplot of Gold Returns %, Silver Return %

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Silver Stock:
Minimum: -2.25
1
st
quartile: 0.75
Median: 1.75
3
rd
Quartile: 3
Maximum: 6
3) Determine which stock is more consistent in earnings. Explain with quantitative facts.
Consistency can be measured by range and IQR. The lower the IQR and range the better
the consistency.
Range = maximum minimum
IQR = 3
rd
quartile 1
st
Quartile
For Gold Stock:
Range = 4.5-2 = 2.5
IQR = 3.75 -3 = 0.75
For silver Stock:
Range = 6 - -2.25 = 8.25
IQR = 3- 0.75 = 2.25
The gold stock has lower IQR and range as compared to the silver stock and therefore has
more consistency in earnings.
4) In general, use the information from previous questions to document an educated technical
conclusion justifying for which stock the investor should place a higher amount of assets
An investor should place a higher amount of assets on the gold stock. The gold stock
has higher central 50% earnings than the silver stock, and also more consistent
earnings.
Assignment 2

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Assignment 1 An investor needs to compare two stocks earnings in order to decide about further decisions in financial planning. For that reason, the “side by side” box plot of both stocks earnings is given below. Boxplot of Gold Returns %, Silver Return % Gold Returns % Silver Return % -3 -2 -1 0 1 2 3 4 5 6 Data 1) Determine which stock has higher central 50% of the earnings. For gold returns, the median is approximately 3.5 while for silver, the median is approximately 1.75. The Gold stock therefore has higher central 50% earnings than the silver stock 2) Determine from the display the five numbers summary of each stock earnings. Approximates based on the graph are: Gold stock: Minimum: 2 1st quartile: 3 Median: 3.25 3rd Quartile: 3.75 Maximum: 4.5 Silver Stock: Minimum: -2.25 1st quartile: 0.75 Median: 1.75 3rd Quartile: 3 Maximum: 6 3) Determine which stock is ...
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Anonymous
Awesome! Perfect study aid.

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