STATISTICAL COMPARISON OF PERFORMANCE INDEXES

DESCRIPTION

Data sets collected in Phase I will be utilized to explore central and variation tendencies, create index

numbers, and write analytics report that will compare the above data for statistically significant

differences.

INSTRUCTIONS

Step $1.$ Using the Excel spreadsheet, acquire and visualize data for S&P$500$ and Dow$-$Jones indexes

for the same year as chosen in Phase $1.$

Step $2.$ What were the major events that have occurred in the market $($for example, market rallies,

market crashes, changes in government policies, economic situation$)?$

Step $3.$ How did these major events reflect in the behaviour of S&P$500$ and Dow$-$Jones indexes?

Step $4.$ Write a $1000$ to $1500$ words report comparing the performance of S&P$500,$ Dow$-$Jones and the

company selected in Phase $1$:

$4\mathrm{.}1$ Which of the compared items exhibited higher returns.

$4\mathrm{.}2$ Which of the compared items exhibited higher volatility.

$4\mathrm{.}3$ Using the hypothesis test framework, calculate whether the differences in returns are statistically

significant.

$4\mathrm{.}4$ Using the hypothesis test framework, calculate whether the differences in volatilities are statistically

significant.