A simple name change resulted in a short-term increase

Assignment Help Applied Statistics
Reference no: EM13722357

There is some evidence that, in the years 1981-1985, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw, "Does it pay to change your company's name? A stock market perspective," Marketing Science v.6, pp.320-335,1987 .)

Suppose that, to test the profitability of name changes in the more recent market (the past five years), we analyze the stock prices of a large sample of corporations shortly after they changed names, and we find that the mean relative increase in stock price was about %0.73, with a standard deviation of %0.11. Suppose that this mean and standard deviation apply to the population of all companies that changed names during the past five years. Complete the following statements about the distribution of relative increases in stock price for all companies that changed names during the past five years.

 

a. According to Chebyshev's theorem, at least 36% of the relative increases in stock price lie between ___% and ___%

b. According to Chebyshev's theorem, at least ____ of the relative increases in stock price lie between 0.51 % and 0.95 %.

c. Suppose that the distribution is bell-shaped. According to the empirical rule, approximately ____% of the relative increases in stock price lie between 0.51 % and 0.95 %.

d. Suppose that the distribution is bell-shaped. According to the empirical rule, approximately 68% of the relative increases in stock price lie between ____% and ___%.

 

Reference no: EM13722357

Questions Cloud

Describe a conflict within an organization or team : Describe a conflict within an organization or team with which you are familiar. Identify and describe the source(s) and level of the conflict and support with evidence.
Select organization to analyze its layout decisions : Select a company/organization to analyze its layout decisions. (E.g. Hospital, Polyclinic, Shop, Hypermarket, Supermarket, University, Beauty salon, charitable organization etc.) We have analyzed Hyper Panda and McDonald's layout during layout lec..
Identify and explain the principle of common technologies : Identify and explain the principle of two common technologies for protecting buried carbon steel tanks from corrosion. Comment, with reasonable justification
Describe the advantages and disadvantages of quasi-experimen : 2.Describe the advantages and disadvantages of quasi-experiments? What is the fundamental weakness of a quasi-experimental design? Why is it a weakness? Does its weakness always matter?
A simple name change resulted in a short-term increase : There is some evidence that, in the years 1981-1985, a simple name change resulted in a short-term increase in the price of certain business firms' stocks (relative to the prices of similar stocks). (See D. Horsky and P. Swyngedouw,..
Accordance to lognormal distribution with mttf : A flange bolt wears out because of fatigue in accordance to lognormal distribution with MTTF = 10.00 hr and s =2.00. If preventive maintainance consists of periodically replacing the bolt, what is the reliability at 550hr with and without pre..
Write about mexico culture : Visit that place to write about any country but i cant go to visit that place so i choose a from that web pic to write about it
Let g = (v, e) be an undirected graph with v : Let G = (V, E) be an undirected graph with V = {1, . . . , K}. Let C1, . . . , CL be the set of maximal cliques in G. Let p(x) = (1/Z)*exp [Sum_l=1toL(ψ_l(x_Cl))]
Explain the process of strategy mapping : Explain the process of strategy mapping and how it relates to performance management and establishing value propositions.

Reviews

Write a Review

Applied Statistics Questions & Answers

  The average wonderlic score and graduation rate

Relationship between the average Wonderlic score and graduation rate?

  Compute the durbin-watson statistic

The owner of a single-family home would like to develop a model to predict electricity consumption in his house, based on average atmospheric temperature in degrees Fahrenheit.

  Our judicial system operates under a similar principle

Our judicial system operates under a similar principle

  What is the average number of breakdowns per day

This variable represents the number of machine breakdowns during a day, based on this simulation run, what is the average number of breakdowns per day?

  Significant difference between their mean levels of wages

Significant difference between their mean levels of wages?

  State the null hypothesis for the effect of guided imagery

What type of analysis was conducted in this study? Was this analysis technique appropriate? Provide a rationale for your answer and how many means are being compared for the pain scores at 12 weeks?

  What percentage of current customers would be eligible

What percentage of current customers would be eligible for the discount?

  Problems with sticking accelerator pedals

An automobile manufacturer has problems with sticking accelerator pedals

  Dress code is necessary for team coherence

A department store manager has decided that dress code is necessary for team coherence

  Describes the theory the researchers explore

Describes the theory the researchers explore

  What is her charitable contribution deduction

Dana Davenport donates eight hours of her time on a Saturday to help out a qualified charity. What is her charitable contribution deduction?

  Diane brown is the mayor of a large city

Diane Brown is the mayor of a large city. Lately, she has become concerned about the possibility that large numbers of people who are drawing unemployment checks are secretly employed. Her assistants estimate that 40% of unemployment benefi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd