MBA FPX 5008 Assessment 2 Using Analytic Techniques to Add Meaning to Data Mean, Median, Mode, and Standard Deviation of Adjusted Closing Stock Prices
| Adjusted Closing Stock Prices in USD | Value |
|---|---|
| Mean | $46.27 |
| Median | $46.05 |
| Mode | $45.21 |
| Standard Deviation | $4.25 |
Figure 3.1: Descriptive statistics for Southwest Airlines Co.’s adjusted closing stock price, based on Yahoo! Finance data (2022).
An analysis of Figure 2.1 shows that the most frequently occurring ranges are clustered toward the middle of the histogram, except for one outlier. Comparing these values with Figure 3.1 reveals a slight positive skew, as indicated by the mean, median, and mode values being higher than the most frequent ranges. The standard deviation of $4.25 suggests that approximately 68% of stock prices should fall between $42.02 and $50.52, covering 84% of occurrences. The coefficient of variation is 9.2%.
Mean, Median, Mode, and Standard Deviation of Daily Traded Stock Volume
| Daily Traded Stock Volume (Shares) | Value |
|---|---|
| Mean | 7,575,296 |
| Median | 6,837,600 |
| Mode | N/A |
| Standard Deviation | 2,794,422 |
Figure 3.2: Descriptive statistics for Southwest Airlines Co.’s daily traded stock volume, based on Yahoo! Finance data (2022).
The trading volume histogram (Figure 2.2) is positively skewed, showing that most data points are on the right. This skew suggests that the mean is not a reliable measure of central tendency compared to the median. The mode is not available due to a lack of repeated values. With a standard deviation of 2,794,422, the trading volume’s coefficient of variation is 36.8%.
Summary of Data Interpretation
Figures 1.1 and 1.2 indicate a general downward trend in Southwest Airlines’ stock prices over the past year, despite daily fluctuations. This trend mirrors industry-wide patterns, with airline stocks showing significant declines due to economic challenges (Josephs, 2022). Analysts suggest that despite the recent downturn, the airline industry could recover as consumer travel and financial stability improve.
References
Beers, B. (2022). Determining risk with standard deviation. Investopedia. Retrieved from https://www.investopedia.com
Boon, T. (2019). Why low cost carriers stick to one plane type. Simple Flying. Retrieved from https://simpleflying.com