Statistical Analysis Exam 2 Question 20 Of 50 Points ✓ Solved

Statistical Analysis Exam 2question 20 Of 2050 Pointsthe Table Sh

The table shows the price of a volatile stock from the months January 1999 through December 1999 as determined by the closing price on the last trading day of the month. The price is rounded to the nearest dollar. Which time series line chart represents the data?

Options are: A, B, C, D, or None of the above.

Sample Paper For Above instruction

In analyzing the stock prices from January to December 1999, it is crucial to understand the nature of volatility and the behavior of stock prices over the year. The data shows the closing prices rounded to the nearest dollar, which provides a simplified view of the stock's performance. A line chart is an appropriate graphical representation for such time series data because it clearly depicts the trends and fluctuations over the months.

To determine which line chart (A, B, C, D, or None of the above) correctly represents the data, we must consider the specific trends described. For example, if the stock experienced several peaks and valleys, the correct chart should illustrate corresponding fluctuations. If the stock price steadily increased or decreased, the line chart should show a consistent trend. Since the exact data points are not provided here, one must analyze the visual patterns of each option and compare them with the characteristics of stock behavior described in the data.

Given the volatility, we might expect a line chart with multiple fluctuations, rather than a smooth, steady line. The correct chart, therefore, should display several upward and downward movements that align with the monthly data. Without the actual visual options here, the best approach is to examine each chart: Chart A might show sharp variations, Chart B could depict a steady increase, Chart C may show a decline, and Chart D might have irregular peaks and troughs. If none of the charts accurately reflects these patterns, the correct answer would be 'None of the above.'

Thus, the key to selecting the appropriate line chart depends on matching the visual data trends with the known volatility and monthly fluctuation pattern of the stock prices. This process involves assessing each chart for the depiction of fluctuations aligned with the data's volatility, or lack thereof. Conclusively, the proper selection hinges on a detailed comparison, emphasizing the fluctuation patterns characteristic of a volatile stock in a volatile market period like 1999.

References

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