Question: 2. TIME PLOTS: Another simple tool for comparing price series over time is the univariate time plot. Plot stock price by day for each of

 2. TIME PLOTS: Another simple tool for comparing price series over

2. TIME PLOTS: Another simple tool for comparing price series over time is the univariate time plot. Plot stock price by day for each of the ten companies for which price series is provided. a. Are the Y axis scales the same for all plots? What advantages are there in making all scales the same? What are the disadvantages? b. Look at the overall shapes of the plots. Can you group the companies according to the shapes? Are these groups a sensible answer to the question posed above concerning similarity, or should one also consider the level of activity? That is, given two graphs with roughly the same shape, would you consider them similar even if one averaged about 20 dollars and the other about 65? c. What about variability? How can you assess variability in these graphs? Would a great difference in variability be enough for you to place two otherwise similar stocks in different groups

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