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CBA/CSUS/ Sp2021
MBA 206 Name: __________________

Attempt all questions: Maximum Points: 20

Q1. You are to calculate the mean and standard deviation for the rate of returns for Honda,
Nordstrom, and General Electric. Use MONTHLY VALUES for the period January 30, 2010
through January 30, 2021. [8 points]

1. Go to http:www.yahoo.com. Select the Finance option
2. Enter your stock's symbol (Honda, Nordstrom and General Electric) one by one. Use the
symbols in parentheses below to retrieve the particular set of listings for example Honda-
HMC
3. Under the Summary tab select "Historical Data"
4. Enter the dates correctly under the ‘set date range’ for the selected stock. Make sure
the time period covered is January 30, 2010 through January 30, 2021.
5. Select “Historic Prices and select correct frequency (in this case monthly)”. Further, click
on “Apply” tab.
6. Then just below Apply tab is download the spreadsheet. Download the spreadsheet as
an excel file and save it.
7. Delete all the columns except “Date” and “Adjusted close” columns for all three stocks.
Keep only one column of “Date”.
8. Make sure the data is in ascending order (by date) (i.e. old date on the top and most
recent date on the bottom of the “Date” column).
9. Calculate the Rate of Returns (Xt - Xt-1 ) / Xt-1 for all three stocks.

Determine the means and standard deviations for the rate of returns of all three stocks. You
should use Excel to do this. In Excel use the functions (Fx) Average and STDEV.
Average Standard Deviation
Honda (HMC)
Nordstrom (JWN)
General Electric(GE)

Which stock will you invest your money? Explain why?




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Q2. The underlying principle of all statistical inference is one that uses sample statistics to learn
something (that is to infer) about population parameter. Convince me that you understand this
statement by writing a short paragraph describing an example in which you might use a sample
estimate to infer about a population parameter. Clearly identify and define the terms:
population, parameter, sample, sample estimate and sample error in your example. Be as
specific as possible. You may make up numbers. [6 points]




















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Q3. Suppose a medical representative from Pfizer is making 12 visits to see doctors at Kaiser
Permanente and the probability of a successful visit is 0.5. What is the probability distribution of the
binomial random variable that the representative will make 9 successful visits to see the doctors at
Kaiser Permanente? [3 points]








Q4. Daily sales at a large retailer are normally distributed, with µ= $160,000 and σ= $20,000. What is
the probability that sales tomorrow will exceed $200,000? [3 points]











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