Presentation is loading. Please wait.

Presentation is loading. Please wait.

Appendix 7 Statistical Tools –Arithmetic Mean –Geometric Mean –Standard Deviation –Correlation –Regression Analysis.

Similar presentations


Presentation on theme: "Appendix 7 Statistical Tools –Arithmetic Mean –Geometric Mean –Standard Deviation –Correlation –Regression Analysis."— Presentation transcript:

1 Appendix 7 Statistical Tools –Arithmetic Mean –Geometric Mean –Standard Deviation –Correlation –Regression Analysis

2 You own 100 shares of IBM which is selling at $96, 200 shares of Disney which is trading at $106, and 500 shares of Iddex which is trading at $15. Calculate the arithmetic and geometric means for these stocks. Calculate the weighted average for these stocks.

3 Arithmetic Mean =$ Geometric Mean {96 * 106 * 15 } 1/3 = $53.44 Weighted Average (100 * 96) +(200 *106) + (500 * 15) = $

4 Example of Arithmetic vs. Geometric Year Price of Idexx 0 $ 15 1 $20 2 $17 3 $25 Calculate the percentage change in the price of Idexx each year. Calculate the Arithmetic and Geometric means.

5 Variance   = E ( r n - r ) 2 n - 1 Calculate the variance of Idexx’s stock price.

6 Correlation R a,b = Covariance of AB (Std.Dev. A)(Std. Dev. B)

7 Regression Analysis r s = a + b r m + e


Download ppt "Appendix 7 Statistical Tools –Arithmetic Mean –Geometric Mean –Standard Deviation –Correlation –Regression Analysis."

Similar presentations


Ads by Google