Research Methods
Project description
1 Download the weekly data of the index for the calendar year 2009 and make a time plot of the data. Comment on the variability of the index looking at the plot.
Report the standard deviation and the range of the data and any other measures of uncertainty you feel are suitable and appropriate.
2 Download the weekly data of the index for the calendar year 1999 and compare the data for 1999 and 2009 on a single plot. Which year has been more volatile?
Calculate the respective standard deviations and ranges of the two sets of data as well as and any other measures of uncertainty you feel are suitable and appropriate.
Do these numbers confirm your observations about the relative volatility of the two years?
3 Download the weekly data of the index S&P 500 for the calendar year 2009 and compare the data for same year for NASDAQ on a single plot. Which index has been more
volatile? Calculate the respective standard deviations and ranges of the two sets of data as well as and any other measures of uncertainty you feel are suitable and
appropriate. Do these numbers confirm your observations about the relative volatility of the two indices?
4 Download the weekly data of the index Dow Jones Industrial Average (DJIA) for the calendar year 2009 and compare the data for same year for NASDAQ on a single plot.
Which index has been more volatile? Calculate and draw the respective Boxplots and Histograms. Do these graphs confirm your observations about the relative volatility
of the two indices?
5 Download the weekly data of the DJIA index for the calendar year 2013, year 1986+10 years (where DD/MM/YYYY your date of birth) and compare the data for 2013,
1986+10 years and 2009 on a single plot. Which year has been more volatile?
[This case study is adopted from the case at the end of the 1st chapter of the 6th edition of Aczel and Sounderpandian Complete Business Statistics]
Marking scheme: 50% of the mark comes from the aforementioned five questions (10% for each), and 50% from the overall presentation of the business report written as if
you are an Independent Analyst of Stock markets. A business report must have a nice cover, a good executive summary, an introduction and a main body that reads through
smoothly and uses lay terms, not using statistical jargon and be formatted with the highest possible quality. It must contain a lot of graphs and as much colour as
possible. No assumptions should be made on the academic background and experience of the potential readership. References should be used carefully and the majority
coming from practitioner/business sources (www, the press, etc) and any technical details /analysis should be in an appendix. Overall the main body should not be about
2500.