Go to Yahoo!Finance and download data at the MONTHLY frequency for the stock `` Amazon.com Inc`` with ticker AMZN with starting date June 1, 1997 and end date August 4, 2016. Use the ADJUSTED CLOSING PRICE to create the monthly RETURNS that are the percentage change of the adjusted closing price (NB: make sure to sort first the price from OLDEST TO NEWEST; the percentage return is 100 times the price change between the current and previous month divided by the price in the previous month). Based on the time series of the stock return, answer the following questions (NB: you should have 230 monthly returns): Calculate the sample mean or average of the stock return: Calculate the sample standard deviation of the stock return: !!! For the questions below, use the values for the mean and std. dev. that you typed above !!! Assuming that the returns follow a normal distribution: Calculate the P(return > 3.31): Calculate the P(-14.59 < return < 35.61): Find x such that P(return < x) = 0.9802 : Find x such that P(return > x) = 0.1766 : Calculate the lower limit of a 99% confidence interval for the population mean: Calculate the test statistic for the null hypothesis that the population mean is equal to 0 : Do you reject the null hypothesis that the population mean is equal to 0 against the alternative that it is different from zero at 10% significance level? (type DO NOT REJECT or REJECT in capital letters) Do you reject the null hypothesis that the population mean is larger or equal to 0 against the alternative that it is smaller than zero at 5% significance level? (type DO NOT REJECT or REJECT in capital letters)

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Go to Yahoo!Finance and download data at the MONTHLY frequency for the stock `` Amazon.com Inc`` with ticker AMZN with starting date June 1, 1997 and end date August 4, 2016. Use the ADJUSTED CLOSING PRICE to create the monthly RETURNS that are the percentage change of the adjusted closing price (NB: make sure to sort first the price from OLDEST TO NEWEST; the percentage return is 100 times the price change between the current and previous month divided by the price in the previous month).

Based on the time series of the stock return, answer the following questions (NB: you should have 230 monthly returns):

Calculate the sample mean or average of the stock return:

Calculate the sample standard deviation of the stock return:

!!! For the questions below, use the values for the mean and std. dev. that you typed above !!!

Assuming that the returns follow a normal distribution:

Calculate the P(return > 3.31):

Calculate the P(-14.59 < return < 35.61):

Find x such that P(return < x) = 0.9802 :

Find x such that P(return > x) = 0.1766 :

Calculate the lower limit of a 99% confidence interval for the population mean:

Calculate the test statistic for the null hypothesis that the population mean is equal to 0 :

Do you reject the null hypothesis that the population mean is equal to 0 against the alternative that it is different from zero at 10% significance level? (type DO NOT REJECT or REJECT in capital letters)

Do you reject the null hypothesis that the population mean is larger or equal to 0 against the alternative that it is smaller than zero at 5% significance level? (type DO NOT REJECT or REJECT in capital letters)

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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