Statistical Analysis of ASX Stock and Petrol Price Trends

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1of 6Statistical Analysis of ASX Stock and Petrol Price TrendsAssessment details for all studentsAssessment item 2—Assignment 2Due date:6:00pm, Friday Week10ASSESSMENTWeighting:20%2Format:Submit one file online as .doc, .docx, .rtf or .pdfAssessment criteria•This assignment must be typed,word-processedor clearly hand-written(since theassignment must be submitted electronicallyas a single file) and an appropriate equationeditor should be used.Important note:There is no need toinclude the text of the assignmentquestions in your submission.•MicrosoftExcelallowsstudents to cut and paste information easily into Microsoft Worddocuments. Word also allows the use of Microsoft EquationEditorto produce all necessaryformulae(use of these arerecommended).•It is expected thatExcelwouldbe used to assist in statistical calculations for questions in thisassignment.Where Excel is used, use copy function, “Snipping tool” or similar to cut and pasterelevant parts of the spreadsheet to verify that you have done the work.•For those questions whereExcelis not used,all formulae and working must be included to obtainfull marks.•Only one file will be accepted in any of the formats mentioned above. No zipped file or any otherfile extension will be accepted.•There will be late submission penalty for submissions beyond the deadline unless prior approvalis obtained from the Course Coordinator through the extension system in Moodle. Under nocircumstances any submission that is late beyond 14 days from the deadline will be marked, orget any score other than zero.Assignment markers will be looking for answers which•demonstrate thestudent’sability to interpret and apply the statistical techniques in thescenariosand•use statistical techniques as decision making tools in the business environment.Full marks will not be awarded to answers which simply demonstrate statistical procedures withoutcomment, interpretation or discussion (as directed in the questions).

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2of 6PlagiarismCQU values academic honesty. Consequently, plagiarism will not be tolerated in assessment items. Thisassignment must be completed by each student individually.Question 14MarksVisit the Australian Stock Exchange website, www.asx.com.au andfrom “Prices and research” drop-down menu, select “Charting”. Type in the ASX code “ORI” (Orica Limited), select OLHC Bar, andTimeframe “Monthly prices over 10 years”. Click on “Create chart”.After you create the chart, readthe values in the beginning of every Quarter (January, April, July, October)for every year from 2001to 2014. (ASX information may be incomplete andthevalues adjusted, not original,which will giveyou at most 60 percent marks. Read the note below if you wish to score higher marks.)(a)List all the values in a table and then construct astem-and-leaf display for thedata.1 markFor accurate values, searched the internet and obtained monthly open prices from thefollowing links and ensured the prices by verifying randomly.http://www.nasdaq.com/symbol/ori/historicalhttps://au.finance.yahoo.com/q/hp?s=ORI.AX&a=00&b=29&c=1988&d=08&e=21&f=2015&g=mThe values are in the attached excel sheet ‘HistoricalQuotes’. From the raw data, copied values inthe beginning of every Quarter for every year from 2001 to 2014 and pasted in the tab’Sheet1’Construction of stem-and-leaf diagrambyusing excels:Creation of stem and leaf using excel add in ‘Megastat’Step 1: first open the excel options and select Add_insStep 2: Select ‘Megastat’ and click buttion ‘Go’Step 3:Then select ‘Megastat’ from ‘Add-Ins’ pop up and click ‘OK’Step 4: Click Add-ins option in the excel and then select ‘Megastat’ optionStep 5: Select ‘Descriptive Statistics’ option and click ‘Stem and Leaf Plot’ option.Step 6: Input the data range for the graph and click ‘OK’Step 7: if need you can select option for output of the graph in the same tab or a new tab.Below is the output of the data.Descriptive statisticsOpen pricecount56

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3of 6Stem and Leafplot forOpen pricestem unit =10leaf unit =1FrequencyStemLeaf304 4 4605 7 7 8 9 9810 0 1 3 3 4 4 4516 7 7 8 92020 0 0 0 0 1 1 1 2 2 2 3 3 4 4 4 4 4 4 41225 5 5 5 5 6 6 6 8 8 8 9230 256(b)Construct a relative frequency histogram for these data with equal class intervals, the firstclass being “$0 to less than $5”.1 markRelative frequency histogram with equal class intervals, using excelAnalysistool pakStep 1; Here first class being“$0 to less than $5” so first writes downthe classes as ‘0 to less than$5’, ‘$5 to less than $10’ and so on to ‘$35 and above’ and then write downthe bins( upper limits)ofeach class inthe excel.Step 2:then select the ‘Data’ option in menu barStep 3: select ‘Data Analysis’ option available on top right cornerStep 4: Select Histogram and click ‘OK’Step 4: Select ‘Input Range’ and ‘Bin Range’‘chart output’and click ‘OK’Step 5: Click the graph and select the data for x-axis is class interval ‘CI’Below is the outputof relative frequency distribution and graph ofHistogram.CIBinFrequency$0 to less than $54.99993$05to less than $109.99996$10 to less than $1514.99998$15 to less than $2019.99995$20 to less than $2524.999920

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4of 6$25 to less than$3029.999912$30 to less than $3534.99992$35 or aboveMore0Graph of Histogram is(c)Briefly describe what the histogram and the stem-and-leaf display tell you about the data.What effects would there be if the interval size isdoubled, which means the first class will be“$0 to less than $10”?1 markHistogram is a good graphical representation of thesummarizeddata.From the Histogram it was observed that typical classis $20 to less than $25. The medianlies in the class. More number of observations below the median class. The tail of the leftside is more than the right side. So the distribution is slightly skewed.Mean is less than Median.The stem and leaf diagram is a good representation of the raw data. The advantage of thisgraph over histogram is that we can find the actual data in this graph.Total number of observations in the data set is 56.The typical class is $20 to less than $25.From the graph we can observeleft-handside tail is more thanright sideso the distribution isnegatively skewed.No outliers present in the data.(d)What proportion of stock prices were above $25?1 markThe number of stock prices above $25 is 130510152025$0 tolessthan$5$05tolessthan$10$10 tolessthan$15$15 tolessthan$20$20 tolessthan$25$25 tolessthan$30$30 tolessthan$35$35 oraboveFrequencyBinHistogramFrequency

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5of 6The proportion of stock prices were above $25 is130.23214323.21%56==(Note: To get more accurate values you will need to search the Internet–it is part of the assignmenttask to test your ability to find the correctinformation. If you use Etrade Australia, for example, asgiven in the figure below, use the opening price for the given quarter, which is the whisker to the leftof each bar.For higher accuracy, use the interactive chart, andasyou move thecursorin theinteractive chart, the values will display in dollars and centsat the top.)Explanation of ASX chart termsThered linerepresents the price of the primary security over the requested time frame. Theactual price level is shown on the right axis. The chart may not show actual share prices asshareprices are adjusted.Theblue linerepresents the price or value of the secondary security over the requested timeframe. The actual price or value is shown on the left axis.Thegreen linerepresents themoving averagefor the primary security.Thedark green barsrepresent the turnover for the primary security.Theburgundy linerepresents the volumemoving averagefor the primary security.Adjustments-The charts are adjusted to smooth out the effect of bonus issues, rights issues,special dividends, share splits, consolidations, capital reductions, or to link historical values thatrepresent the company's primary equity security. The chart also assumes that all company issuedoptions and convertible securities are converted into ordinary shares.Moving average-The average value of a security over a period of time. A moving averagehelps to smooth out volatility in a security's price or volume. For example, a 20-day average ofclosing prices is calculated by adding the last 20 closing prices for the security and dividing by20.

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