Descriptive Statistics for the Closing Stock Prices of Two Companies

question 41

Essay

Descriptive statistics for the closing stock prices of two companies for several trading periods are shown below.
$\begin{array} { l }\text { Baba, Inc. }&\text { Maman, Inc. } \\\begin{array}{lr}\hline \text { Mean } & 4.00 \\\text { Standard Error } & 0.11 \\\text { Median } & 3.92 \\\text { Mode } & 4.19 \\\text { Standard Deviation } & 1.12 \\\text { Sample Variance } & 1.25 \\\text { Kurtosis } & -1.15 \\\text { Skewness } & 0.08 \\\text { Range } & 3.95 \\\text { Minimum } & 2.03 \\\text { Maximum } & 5.98 \\\text { Sum } & 436.32 \\\text { Count } & 109\\\hline \end{array}&\begin{array}{lr}\hline \text { Mean } & 15.91 \\\text { Standard Error } & 0.29 \\\text { Median } & 16.59 \\\text { Mode } & 15.58 \\\text { Standard Deviation } & 3.21 \\\text { Sample Variance } & 10.31 \\\text { Kurtosis } & 3.52 \\\text { Skewness } & -2.09 \\\text { Range } & 13.45 \\\text { Minimum } & 5.55 \\\text { Maximum } & 18.99 \\\text { Sum } & 1972.61 \\\text { Count } & 124\\\hline \end{array}\\\end{array}$

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:

Productive Exchanges

Transactions that result in mutual benefit to the parties involved, typically enhancing overall economic productivity.

Economic Growth

Refers to the increase in a country's production of goods and services over time, typically measured as the percentage increase in real gross domestic product (GDP).

Size Of Government

Size Of Government involves the extent of government involvement in a country's economy, including expenditure, taxation, and resource allocation.

Economic Theory

A set of principles and methodologies that explain how economies function, encompassing concepts such as supply and demand, market equilibrium, and economic policy.