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Descriptive Statistics for the Closing Stock Prices of Two Companies

Question 28

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Descriptive statistics for the closing stock prices of two companies for several trading periods are shown below.
 Baba, Inc.  Maman, Inc.  Mean 4.04 Standard Error 0.11 Median 4.07 Mode 3.59 Standard Deviation 1.13 Sample Variance 1.28 Kurtosis 1.10 Skewness 0.04 Range 3.98 Minimum 2.00 Maximum 5.98 Sum 416.05 Count 103 Mean 16.41 Standard Error 0.22 Median 16.83 Mode 16.59 Standard Deviation 2.34 Sample Variance 5.48 Kurtosis 9.10 Skewness 2.85 Range 12.57 Minimum 6.29 Maximum 18.86 Sum 1919.63 Count 117\begin{array} { l }\text { Baba, Inc. }&\text { Maman, Inc. } \\\begin{array}{lr}\hline \text { Mean } & 4.04 \\\text { Standard Error } & 0.11 \\\text { Median } & 4.07 \\\text { Mode } & 3.59 \\\text { Standard Deviation } & 1.13 \\\text { Sample Variance } & 1.28 \\\text { Kurtosis } & -1.10 \\\text { Skewness } & 0.04 \\\text { Range } & 3.98 \\\text { Minimum } & 2.00 \\\text { Maximum } & 5.98 \\\text { Sum } & 416.05 \\\text { Count } & 103\\\hline \end{array}&\begin{array}{lr}\hline \text { Mean } & 16.41 \\\text { Standard Error } & 0.22 \\\text { Median } & 16.83 \\\text { Mode } & 16.59 \\\text { Standard Deviation } & 2.34 \\\text { Sample Variance } & 5.48 \\\text { Kurtosis } & 9.10 \\\text { Skewness } & -2.85 \\\text { Range } & 12.57 \\\text { Minimum } & 6.29 \\\text { Maximum } & 18.86 \\\text { Sum } & 1919.63 \\\text { Count } & 117\\\hline \end{array}\\\end{array}

a. Which company's stock price has a more dispersed distribution? Explain. Show your complete work and support your answer.
b. Compare the Skewness of the two and explain what is indicated.

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