Attached is the daily closing price of the stock (xmsr).
Decide whether the data appears to be normally distributed by:
1. record the daily changes in the closing stock price of each day.
a. make a stem and leaf display, histogram or polygon, and box and whisker plot.
b. evaluate the actual versus theoretical properties.
c. construct a normal probability plot.
d. discuss the results. of a,b, and c.
note* the random walk theory pertains to the daily changes in the closing stock price, not the daily closing stock price.
e. based on the conclusions in d what can you now say about your distribution of each type- the daily closing prices and daily changes in closing prices? Which if any of the data sets appear to be approximately normally distributed?
Use the following:
a. closing price and previous closing price
b. daily change and previous day change
1. to make a scatter plot of the 2 data sets
2. complete the regression coefficient of the 2 data sets
3. run a regression for both and interpret it.
The solution analyzes closing price data on stocks and discusses its normality as well as the relevance of the data to random walk theory.