Reference no: EM133060979

Assume that the closing prices of the stock form a normally distributed data set. You will use the mean of 2364.33 and standard deviation of 565.57 and the methods you learned in sections 5.1, 5.2, and 5.3 of the textbook for Normal Distributions to answer the following questions.

1. If a person bought one share of Amazon stock within the last year, what is the probability associated with the stock price closing at P₅₀? Hint: no calculations needed.
2. If a person bought one share of Amazon stock within the last year, what is the probability that the stock on that day closed at less than $1,720.00? (a) give the z-score (b) give the probability
3. If a person bought 1 share of Amazon stock within the last year, what is the probability that the stock on that day closed within $85.00 of the mean for that year? (a) give the z-score(s) (b) give the probability
4. Suppose a person within the last year claimed to have bought Amazon stock closing at $1947.65 per share. (a) What is the probability that the stock closed at $1947.65 or more on a randomly selected business day? (i) give the z-score (ii) give the probability (b)Would this price be considered unusual? (c) Why or why not? (Use the definition of unusual from the textbook and or semester lecture notes to explain.)
5. At what prices would Amazon have to close in order for it to be considered statistically unusual? You should have (a) a low price and (b) a high price. Be sure to use the definition of unusual from the textbook and or semester lecture notes.
6. Look at the dataset values and (a) describe the differences between the October 2019 closing prices and the October 2020 closing prices. (b) Explain the circumstances that likely influenced these differences.
7. Look at the histogram provided. The shape does not need to be perfect. Real data sets are never perfect. However, the shape should be close to the proposed distribution type. (a) Does this distribution have the properties of a normal distribution as described in our textbook; in other words, is the histogram's shape the appropriate shape for a normal distribution? (b) Why or why not? (c) Is the assumption of a normal distribution that was made at the beginning of the project valid? (d) Why or why not?