Analysing US Stocks Data from NYSE, AMEX, and Nasdaq Part A: Sampling Q1. What

Question: Analysing US Stocks Data from NYSE, AMEX, and Nasdaq Part A: Sampling Q1. What sampling plan did you employ to select your sample of 500 US stocks? [1 mark) Q2. Use your own words and describe a possible way to obtain a stratified random sample from the available 3922 US stocks (i.e., from all stocks in the “US Stock Data for Individual Assignment ExcelHelp meShow transcribed image text 100% (1 rating)Answer:- Part A 1) Stratified random sampling. 2) Stratified random sampling is a method of sampling that involves the division of a population into smaller sub-groups known as strata. I…View the full answerTranscribed image text: Analysing US Stocks Data from NYSE, AMEX, and Nasdaq Part A: Sampling Q1. What sampling plan did you employ to select your sample of 500 US stocks? [1 mark) Q2. Use your own words and describe a possible way to obtain a stratified random sample from the available 3922 US stocks (i.e., from all stocks in the “US Stock Data for Individual Assignment Excel file). [1 mark] Part B: Descriptive Statistics Q3. a. Analysis on stock exchange proportion: The “Exchange Name” column in your data indicates the stock trading venue for each stock. In the following table, report proportion of stocks based on stock exchange names in your sample. [1.5 mark] Exchange Name Sample Proportion (in percentage form) New York Stock Exchange American Stock Exchange Nasdaq Stock Exchange b. Use an appropriate chart (properly labelled) to display information in 23-a above, and provide brief interpretation on the chart. [2 mark] c. Estimate the 95% confidence interval for the proportion of stocks traded on the New York Stock Exchange in your sample of 500 stocks. Briefly interpret your answer. [1.5 marks] Page 2 of 5 Q4. The “Exchange Name” column in your data indicates the stock trading venue for each stock: the “Stock Price Level” column in your data indicates whether the end-of-month stock price is “High” or “low”. Investigate the relationship between stock trading venue and stock price level based on the “Exchange Name” and “Stock Price Level” data: Complete the following cross classification table of “Stock Price Level” by “Exchange Name” [3 marks] Exchange Name New York Stock American Stock Nasdaq Stock Exchange Exchange Exchange a. Total High Stock Price Level Low Total b. Derive a relative frequency cross classification table based on row totals (ie, “Stock Price Level”) using the table in Q4-a above. [3 marks) New York Stock Exchange Exchange Name American Stock Nasdaq Stock Exchange Exchange Total Stock Price Level High Low Total b. Derive a relative frequency cross classification table based on row totals (ie. Stock Price Level”) using the table in Q4-a above. [3 marks| Exchange Name New York Stock Exchange American Stock Exchange Nasdaq Stock Exchange Total Stock Price Level High Low Total c. Use an appropriate graph to display the information contained in the cross-classification table of row relative frequencies above. Decide whether there is a relationship between stock trading venue and stock price level. [2 mark] 05. Investigating the relationship between stock return and trading volume: a. In the following table, report average stock return and trading volume for each stock exchange in your sample. [3 marks] New York Stock Exchange American Stock Exchange Nasdaq Stock Exchange Average Stock Retum Average Trading Volume (in Units of 100) Page or b. Estimate the 95% confidence interval of the average return for the New York Stock Exchange, and interpret your answer. [2 marks) I c. Calculate the covariance and correlation coefficient between stock return and trading volume for stocks traded on the New York Stock Exchange, and interpret your answer. Why is correlation useful in determining the strength of the link between two variables (.e., stock return and trading volume in this case)? [3 marks) Q6. Frequency, relative frequency, and cumulative relative frequency a. Construct a frequency and cumulative relative frequency distribution using the “End-of Month Stock Price” data of stocks traded on the New York Stock Exchange (i.e., complete the table below). [3 marks] Relative Frequency Cumulative Relative Frequency Frequency $0 < Price s $10 $10 < Prices $20 $20 < Prices $30 $30 < Prices $40 $40 < Prices $50 $50 < Prices $60 $60 < Prices $70 $70 < Prices $80 $80 <Prices $90 $90 < Price s $100 $100 < Price Page of 5 b. Construct a relative frequency histogram and an ogive for the "End-of-Month Stock Price data of stocks traded on the New York Stock Exchange, using the frequency distribution table in Q6-a above. [2 mark] PartC: Summary and Discussion Q7. Based on your answers above in this individual assignment, briefly discuss how to determine the relationship between two categorical variables (e.g., see Q4), and how to determine the relationship between two numerical variables (e.g., see Q5). Note: Use your own words, and talk about the methods in general. No additional calculation is required. [2 marks]