Homework Assignment #1

DSC 5100 - Quantitative Methods

Q1 (25 points): One invests 100 shares of IBM stocks today. He expects that there could

be five possible opening prices with the respective probabilities at 9:30 a.m. in NYSE the

next day. The following table lists these possible opening prices and their respective

probabilities:

Outcome 1

Outcome 2

Outcome 3

Outcome 4

Outcome 5

Possible Opening Price of IBM,

X

i

$182.11

$163.88

$180.30

$216.08

$144.92

Probability,

p

i

13%

19%

33%

17%

18%

Let

X

represent the five random opening prices of IBM the next day, calculate the mean,

variance, and the standard deviation of

X

. Make your comments on the results you obtain.

(Keep two decimals)

Q2 (25 points): The following table is a data set containing the final score of a class in the

fall semester of 2020 at UNCP.

Final Score

91.29

76.33

63.29

88.73

67.07

78.93

77.29

92.77

76.59

83.58

Using the EXCEL's Descriptive Statistics ToolPak, generate the descriptive statistics for

this data. One EXCEL file named "

Generating Descriptive Statistics Using EXCEL's

Analysis ToolPak.xlsx

in the Module 1's Study Materials area in Canvas provides the

information on how to activate Analysis ToolPak in EXCEL and how to use the

Descriptive Statistics ToolPak to generate descriptive statistics.

Please attach a separate EXCEL file showing the results for this question with your word

file submission for this homework. (

Keep two decimals

)

Q3 (25 points): A random variable,

X

, has a mean

= 8 and standard deviation

X

= 4. One

conducts a sampling procedure from

X

with a sample size of 64.

2

Question: 1). what is the approximate distribution of the sample mean

?

X

2). what is the mean of the sample mean

?

X

3). what is the standard deviation of the sample mean

?

X

Q4 (25 points): This is an open-ended question. Please provide one story from either your

working experience or your life experience about an application of some sort of

quantitative analysis.