What is the probability a company will have a stock price

Assignment Help Econometrics

Reference no: EM131404109

Assignment

I. The average amount of precipitation in Dallas, Texas, during the month of April is 3.5 inches (The World Almanac, 2000). Assume that a normal distribution applies and that the standard deviation is .8 inches.

a. What is the probability a company will have a stock price of at least $40?
b. What is the probability a company will have a stock price no higher than $20?
c. How high does a stock price have to be to put a company in the top 10%?

II. Trending volume on the New York Stock Exchange is heaviest during the first half hour (early morning) and last half hour (late afternoon) of the trading day. The early morning trading volumes (millions of shares) for 13 days in January and February are shown here (Barron's January 23, 2006; and February 27, 2006).
214 163 265 194 180
202 198 212 201
174 171 211 211

III. The probability distribution of trading volume is approximately normal.

a. Compute the mean and standard deviation to use as estimates of the population mean and standard deviation.
b. What is the probability that, on a randomly selected day, the early morning trading volume will be less than 180 million shares?
c. What is the probability that, on a randomly selected day, the early morning trading volume will exceed 230 million shares?
d. How many shares would have to be traded for the early morning trading volume on a particular day to be among the busiest 5% of days?

IV. The U.S. Bureau of Labor Statistics reports that the average annual expenditure on food and drink for all families is $5700 (Money, December 2003). Assume that annual expenditure on food and drink is normally distributed and that the standard deviation is $1500.

a. What is the range of expenditures of the 10% of families with the lowest annual spending on food and drink?
b. What percentage of families spend more than $7000 annually on food and drink?
c. What is the range of expenditures for the 5% of families with the highest annual spending on food and drink?

Reference no: EM131404109

Questions Cloud

What is. the loss to the financial institution : What is. the loss to the financial institution? Assume that six-month LIBOR was 9% per annum halfway through year

Describe the various steps you would take in assessment : A needs assessment is a systematic means of analyzing existing standards and conditions against desired ones. The difference between the current and desired states is referred to as the "gap." This gap reveals information that is necessary to make..

What is the value of the swap to the party paying dollars : The current exchange rate (dollars per pound sterling) is 1.6500. What is the value of the swap to the party paying sterling? What is the value of the swap to the party paying dollars?

What is the probability that the worst will occur : What is the probability that the worst will occur and she will have surprise quizzes in all three classes? What is the probability that she will escape with minimal damage and have a quiz in only one of the three classes?

What is the probability a company will have a stock price : What is the probability a company will have a stock price of at least $40? What is the probability a company will have a stock price no higher than $20?

What is officequips expected profit in businessprocurement : Exactly two of the contracts? Exactly three of the contracts? All four contracts? Overall, what is OfficeQuip's expected profit in this businessprocurement venture?

Identify steps companies can employ to modify ineffective : Training is a fundamental component to any organization. Organizations spend thousands of dollars each year to train and develop employees. Many of the programs do not produce the desired result of increased productivity.Using the Argosy Universi..

Probability that the company vehicle will have a breakdown : What is the probability that the company vehicle will have a breakdown due to defective wheel bearings before it completes tomorrow's 200-mile delivery route?

Prepare a report on the case : Prepare a report on the case- Identify the main problem that needs to be addressed by the management team. Make use of relevant theoretical concepts from the course for defining the problem

User Account

All Pages