Descriptive Statistics for the Closing Stock Prices of Two Companies

question 28

Essay

Descriptive statistics for the closing stock prices of two companies for several trading periods are shown below.
$\begin{array} { l }\text { Baba, Inc. }&\text { Maman, Inc. } \\\begin{array}{lr}\hline \text { Mean } & 4.04 \\\text { Standard Error } & 0.11 \\\text { Median } & 4.07 \\\text { Mode } & 3.59 \\\text { Standard Deviation } & 1.13 \\\text { Sample Variance } & 1.28 \\\text { Kurtosis } & -1.10 \\\text { Skewness } & 0.04 \\\text { Range } & 3.98 \\\text { Minimum } & 2.00 \\\text { Maximum } & 5.98 \\\text { Sum } & 416.05 \\\text { Count } & 103\\\hline \end{array}&\begin{array}{lr}\hline \text { Mean } & 16.41 \\\text { Standard Error } & 0.22 \\\text { Median } & 16.83 \\\text { Mode } & 16.59 \\\text { Standard Deviation } & 2.34 \\\text { Sample Variance } & 5.48 \\\text { Kurtosis } & 9.10 \\\text { Skewness } & -2.85 \\\text { Range } & 12.57 \\\text { Minimum } & 6.29 \\\text { Maximum } & 18.86 \\\text { Sum } & 1919.63 \\\text { Count } & 117\\\hline \end{array}\\\end{array}$

a. Which company's stock price has a more dispersed distribution? Explain. Show your complete work and support your answer.
b. Compare the Skewness of the two and explain what is indicated.

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Definitions:

Sarbanes-Oxley Act

A United States federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Unethical Business Decisions

Choices made in business practices that are morally wrong, illegal, or fall outside of accepted moral guidelines or standards.

Publicly Traded Companies

Companies whose shares are listed on a stock exchange and can be bought and sold by the public.

Codify

The process of collecting and systematizing laws, rules, or regulations into a single, coherent code.