In this project, you will apply the tools learned in EC-300 to a financial portfolio of your selection to determine whether it would be a good purchase.  These need to be done on PC’s; MAC’s do not have sufficient capabilities for performing advanced statistical testing.  This is a good learning lesson for students that they should become accustomed to; the ‘real world’ uses PC’s, not MAC’s.

In this project, you will make the following calculations:

●       Mean

●       Variance

●       Standard Deviation

●       Z-Score and Associated Probability

●       Confidence Interval

●       One Sample Hypothesis Test

●       Two Sample Hypothesis Test

●       ANOVA

●       Comparison of Two Population Variances

●       Linear Regression

Scenario

            Suppose that you work for a consultancy group that provides advice on the stock market.  A client has asked you to provide an analysis of a particular stock for his/her company (you are actually going to pick the stock, see below).  What you will do is amass data from a financial website, utilize the various statistical techniques from the course, and author a ‘financial report’ no shorter than seven pages but no longer than twelve (double spaced, Times New Roman, size 12 font) that contains the statistical analysis you have performed, why you would perform that specific test, and your recommendation for the client.  In particular, the report should discuss:

●     Why you selected the particular company

●       Financial and non-financial characteristics of the company

●       How you calculated the various statistics and what they are

●       The significance of the statistics (both numerically and what relevance the test has)

●       Conclusions based on research – Is the company a good one to purchase