Statistical Analysis On Stock Prices

Wednesday, July 23, 2008
BUSINESS
A REPORT ON ANALYSIS OF SHARE STOCK
STATISTICS I
(BA‐205) PRICES OF FIVE COMPANIES

A Report On-
Analysis of Share Prices

Of
Five Companies
Prepared for-
Tania Afroze
Assistant Professor
Business Administration Discipline
Khulna University
Prepared by-
Name ID
Abdur Rakib Akon 070305
Md Masrul Mollah 070314
Md Nazmul Huda 070323
Ahmed Ibtehaj 070324
SM Mazharul Islam 070351
Date of Submission: July 23, 2008
BBA Program
Khulna University
Letter of Transmittal
July 23, 2008
Tania Afroze
Assistant Professor
Khulna University
Dear Madam,
Here is the report on ‘Analysis of Share Prices Of Five Companies’. This is for you asked
to make a report on any topic on June 17.
As you will see, the statistical calculations we have used a variety of methods and that
resulted some conclusions about all the prices. These calculations are made by the
formulas and techniques we’ve learned through our course of ‘Business Statistics I’.
As a student of BA discipline we enjoyed to prepare this report. We tried our best to make
this report best to present.
Therefore we hope that our report will fulfill your requirements about share prices of the
five companies we’ve observed. Any short comings or mistakes are absolutely our fault
and we will be always available at any time to interpret any portion of the report.
Sincerely yours,
Abdur Rakib Akon (070305)
Md Masrul Mollah (070314)
Md Nazmul Huda (070323)

Ahmed Ibtehaj (070324)
SM Mazharul Islam (070351)
2nd Year, 1st Term

BBA Program
Khulna University
Acknowledgement
First we would like to thank the Almighty Allah for completing the report successfully.
And it was also a great pleasure to us to make this report. We wish to express thank to all
who helped me a lot during the making of the report.
We would like to express my gratitude and regards to our honorable course teacher and
instructor Mrs. Tania Afroze, Assistant Professor, Business Administration Discipline,
Khulna University.
It was very difficult to make such a report of statistical analysis without group work. We
are so glad that we have made it to complete this assignment. We have chosen these five
companies – Social Investment Bank Ltd., Lanka Bangla Finance Ltd., BD Autocars Ltd.,
Jamuna Oil Ltd., and Square Pharmaceuticals Ltd.
We have collected the prices of the shares from the ‘Daily Prothom-Alo’.
Finally we want to thank all who helped us to prepare this report. And again thank you
also to assign us such type of job.
V
Table of Contents
Contents Page No.

Letter of Transmittal III
Acknowledgement V
Summary of the report 01
Part 1: Introduction 01-05

Origin of the report 03
Purpose of the report 03
Scopes of the report 03
Limitations of making the report 04
Hard to find 04
Inaccuracy 04
Time Limit & Exam Time 04
Methodology 04
Sources of collecting data 04
Method of preparing the report 05
Part 2: Statistical Analysis 06-37

Business Statistics Chapter 2: Collection of Data 07
Category of data: Secondary data 07
Business Statistics Chapter 3: Presentation of Data 07
Type of data class: Geographical classified data 07
Frequency Distribution 07
Tabulation of Data 07
Type of Table 08
Diagrams 08
Business Statistics Chapter 4: Measures of Central Tendency 11
Arithmetic Mean 11
Direct Method 12
Short-cut method 13
Combined arithmetic mean 14
Median 15
Quartiles, Deciles, Percentiles 15
Mode 16
Geometric Mean 16
Harmonic Mean 17
Business Statistics Chapter 5: Measures of Variation 19
Range 19
Inerquartile range or Quartile deviation 19
Average deviation 20
Standard deviation 22
Combined Standard Deviation 24
Coefficient of variation 25
Business Statistics Chapter 7: Correlation Analysis 26
Scatter Diagram 26
Karl Pearson’s coefficient of correlation 30
Actual mean method 30
Assumed mean method 31
Probable error of coefficient correlation 32
Rank correlation coefficient 33
Business Statistics Chapter 6: Correlation Analysis 34
Regression equation 34
Regression equation using arithmetic mean 36
Part 3: Statistical Analysis 38-39

Conclusion 39
Appendix 40
Summary of the Report
Share market is like flowing river. Every time the prices of the shares are changing. We
have prepared a report which shows the statistical analysis of the share prices of five
selected companies of first seven working days of May and June. The prices list is given
below-
Date Social Lanka Bangla BD Autocars Jamuna Oil Square

Investment Finance Ltd. Ltd. Ltd. Pharmaceuticals
Bank Ltd. Ltd.
30 April 2008 341.00 115.60 202.25 265.50 4552.25
01 June 2008 361.75 175.60 190.00 210.00 5397.25
04 May 2008 338.00 121.90 203.00 263.30 4649.00
02 June 2008 357.25 181.10 191.00 206.90 5295.50
05 May 2008 335.75 127.10 196.50 264.40 4679.50
03 June 2008 369.00 182.20 190.00 204.30 5293.25
06 May 2008 336.00 131.80 199.75 263.20 4660.50
04 June 2008 431.00 191.10 191.50 201.30 5292.25
07 May 2008 334.00 135.10 196.00 261.00 4657.25
05 June 2008 414.00 210.90 190.00 204.90 5273.75
08 May 2008 335.25 137.30 203.75 260.60 4660.50
08 June 2008 414.50 205.20 187.75 201.50 5247.50
11 May 2008 330.00 136.70 207.50 256.60 4733.25
10 June 2008 399.25 195.30 181.25 221.80 5164.75
Holidays-
May 2008 - 01 (May Day), 02 (Friday), 03 (Saturday), 09 (Friday), 10 (Saturday)
June 2008 - 06 (Friday), 07 (Saturday), 09 (Budget Day)
Page | 1

Chapter 1
Introduction

Origin of the Report
Mrs. Tania Afroze, the honorable course instructor of ‘Business Statistics I’, assigned us
to prepare a report on June 17, 2008 about ‘Statistical Analysis on Five Companies of
May and June’ according to the rules we have learned through the course. So this is the
report as the result of that action.
The date of submission of this report is July 23, 2008.
Purpose of the Report
We are very much passionate to obtain educational background through practical work
besides the theoretical studies. We do not want to study only with the classroom
materials; I want to gather some practical knowledge so that it will help me in achieving
my personal objectives.
The purposes of our report are-
• To make a clear concept through making a relationship between my report writing

theoretical knowledge and my practices.
• To gather knowledge about ‘Stock Exchange’.
• To know something about how share market goes on and how a price change can
have effect on some other variables.
Scopes of the Report
We have collected data from newspaper. We got the needed information from the ‘Daily
Prothom-Alo’. But for the excess of holidays we have included a price of April 30. As the
report is calculation based we have used the secondary source to collect data. We got no
internal data to prepare this report but the secondary data we have collected was sufficient
enough to make it done. And we have used our text book ‘Business Statistics – Gupta and
Gupta’ as a guide to prepare this report.
Page | 3

Limitations of making the Report
We are lucky that we have completed the report successfully within this short time but we
had to face some problems in collecting the data and in making the report. We tried our
best to overcome the difficulties; Allah knows how much we could do. There were
basically 3problems.
Hard to Find
It was so tough to collect the newspaper cutting of May and June. But it we were so lucky
that we got those in collection.
Inaccuracy
The data we have collected was not so accurate. We have got the rates of the last of those
working days. But if we could manage to have the average rate of those days it would be
better for us.
Time Limit & Exam Time
It needs more time to well prepare this kind of report; but we had to prepare it within a
very short time. On the other hand now it took much time during preparatory leave for
our term final examination. We were so busy with my study. In this busyness we had to
give time for this report. This made us so confusing about the report.
Methodology
Sources of collecting data
Primary Sources
No primary sources found.
Secondary Sources
The ‘Daily Prothom-Alo’

(Share prices page)
Page | 4

Method of preparing the report
To prepare this report we have collected the data we needed and made the calculations we
have learned through our ‘Business Statistics I’. And finally we are submitting this report
today.
Page | 5

Chapter 2
Statistical Analysis

Business Statistics Chapter 2: Collection of Data
Category of Data: Secondary Data
We didn’t get any internal source of data. We have collected data from newspaper. So we
have collected data from ‘Secondary Source’.
Business Statistics Chapter 3: Presentation of Data

Type of Data Class: Geographical Classified Data
Our collected data is in a chronological order. So it can be defined as a ‘Chronological

Classified Data’. So this will be a ‘Geographical Classification’ of data type.
Frequency Distribution
Our collected data can’t be distributed in fixed frequency.
Tabulation of Data
Table 2.1: Prices of Shares (in tk.)

Date Social Lanka BD Jamuna Oil Square
Month
Investment Bangla Autocars Ltd. Pharmaceuticals

Bank Ltd. Finance Ltd. Ltd.
Ltd.
30 April 2008 341.00 115.60 202.25 265.50 4552.25
04 May 2008 338.00 121.90 203.00 263.30 4649.00
05 May 2008 335.75 127.10 196.50 264.40 4679.50
May
06 May 2008 336.00 131.80 199.75 263.20 4660.50

07 May 2008 334.00 135.10 196.00 261.00 4657.25
08 May 2008 335.25 137.30 203.75 260.60 4660.50
11 May 2008 330.00 136.70 207.50 256.60 4733.25
01 June 2008 361.75 175.60 190.00 210.00 5397.25
02 June 2008 357.25 181.10 191.00 206.90 5295.50
03 June 2008 369.00 182.20 190.00 204.30 5293.25
June
04 June 2008 431.00 191.10 191.50 201.30 5292.25

05 June 2008 414.00 210.90 190.00 204.90 5273.75
08 June 2008 414.50 205.20 187.75 201.50 5247.50
10 June 2008 399.25 195.30 181.25 221.80 5164.75
Page | 7
N.B.: May 2008 - 01 (May Day), 02 (Friday), 03 (Saturday), 09 (Friday), 10 (Saturday), June 2008 - 06
(Friday), 07 (Saturday), 09 (Budget Day) were holidays.
Type of Table
The table we have presented is a ‘Simple Table’.
Diagrams
The diagrams of the rates of the shares are given below -

N.B.: Here we calculated the prices by first seven working days.
Page | 8
Page | 9
Page | 10
As the data is not distributed in frequency we have only made ‘Bar Diagrams’. It is not
possible to draw ‘Histogram’, ‘Frequency Polygon’, or ‘Cumulative Frequency Curves or
Ogives’.
Business Statistics Chapter 4: Measures of Central Tendency

To calculate ‘Central Tendency’ of the prices of shares we got our data is not ‘Grouped
Data’; this is ‘Ungrouped Data’. So, we followed only rules of ‘Ungrouped Data’ for this
chapter.
Arithmetic Mean
We have calculated the ‘Arithmetic Mean’ in two approaches -
Page | 11
1. Direct Method
2. Indirect Method
Direct Method
N
X + X 2 + ... + X N ∑X 1
Formula: X = 1 = i =1
N N
If the subscripts are dropped, the formula becomes:
X =
∑X
N
Here,
X = Average
X = Observation
N = Number of Observations
Average of the Prices of Social Investment Bank Ltd. of May:

N
X 1 + X 2 + ... + X N ∑X 1
X = = i =1
N N
341.00 + 338.00 + 335.75 + 336.00 + 334.00 + 335.25 + 330.00
X =
7
X = 335.71
Averages:
Prices of May
Social Investment Bank Ltd. = 335.71

Lanka Bangla Finance Ltd. = 129.36
BD Autocars = 201.25
Jamuna Oil = 262.09
Square Pharmaceuticals Ltd. = 4656.04
Prices of June

Page | 12
Jamuna Oil = 207.2429
Short-cut Method
Formula: X = A+
∑d
N
Here,
X = Average
d = ( X − A) [Here, A = Assumed Mean]
Average of the prices of Social Investment Bank Ltd. of June:
We take,
Assumed Mean, A = 400
Calculation of Average Price

X d
( Tk. ) ( X − 400)
361.75 -38.25
357.25 -42.75
369.00 -31.00
431.00 +31.00
414.00 +14.00
414.50 +14.50
399.25 -00.75
∑ d = -53.25
X = A+
∑d
N
− 53.25
X = 400 +
7
X = 392 .3929
Averages:
Averages of May
Page | 13
Jamuna Oil = 262.09
Averages of June

Combined Arithmetic Mean
N1 X 1 + N 2 X 2
Formula: X 12 =
N1 + N 2
Here,
X 12 = Combined mean of the two groups.
X 1 = Arithmetic mean of the first group.
X 2 = Arithmetic mean of the second group.
N1 = Number of the observations in the first group.
N 2 = Number of the observations of the second group.
Combined Average of May and June Prices of Social Investment Bank Ltd.:
N1 X 1 + N 2 X 2
X 12 =
N1 + N 2
7 × 335.71 + 7 × 392.3929
X 12 =
7+7
X 12 = 364.0515
Averages:
Page | 14
Median
N +1
Formula: Median = Size of th observation
2
7 +1
= Size of th observation
2
= Size of 4th observation
Medians:
Medians of May

Jamuna Oil = 263.20
Medians of June

Jamuna Oil = 201.30
Quartiles, Deciles, Percentiles etc.
As our data is ungrouped, we didn’t get any formula to calculate Quartiles, Deciles, or
Percentiles.
Page | 15
Mode
Modes:
Modes of May
Social Investment Bank Ltd. = No mode

Lanka Bangla Finance Ltd. = No mode
BD Autocars = No mode
Jamuna Oil = No mode
Square Pharmaceuticals Ltd. = No mode
Modes of June
Social Investment Bank Ltd. = No mode

Lanka Bangla Finance Ltd. = No mode
Jamuna Oil = No mode
Square Pharmaceuticals Ltd. = No mode
Mode is calculated by determining the value repeated most.
Geometric Mean:
Formula: G.M . = anti log

∑ log X
N
Here,
G.M . = Geometric Mean
X = Observations
N = Number of Observation
Geometric Mean of Prices Lanka Bangla Finance Ltd. of May:
Log List of Prices

Price, X log X
115.60 2.0630
121.90 2.0860
127.10 2.1041
Page | 16
131.80 2.1199
135.10 2.1307
137.30 2.1377
136.70 2.1358
∑ log X = 14.7771
14.771
G.M . = anti log
7
G.M . = anti log 2.110
G.M . = 129.1269
Geometric Means:
Geometric Means of May

Geometric Means of June

Harmonic Mean
N
Formula: H .M . =
⎛1⎞
∑ ⎜⎝ X ⎟⎠
Here,
H .M . = Harmonic Mean
X = Observations
N = Number of Observation
Page | 17
Harmonic Mean of Prices of Lanka Bangla Finance Ltd. of June:
1
list
X
X, 1
Price X
175.6 0.0057
181.1 0.0055
182.2 0.0055
191.1 0.0052
210.9 0.0047
205.2 0.0049
195.3 0.0051
⎛1⎞
∑ ⎜⎝ X ⎟⎠ = 0.0367
N
H .M . =
⎛1⎞
∑ ⎜⎝ X ⎟⎠
7
H .M . =
0.0367
H .M . = 190.8755
Harmonic Means:
Harmonic Means of May

Harmonic Means of June

Page | 18
Business Statistics Chapter 5: Measures of Variation
Range
Formula: Range = L − S
L = Largest Value
S = Smallest Value
Range of the prices of BD Autocars Ltd. of May:
Range = 207.50 – 196.00

= 11.50
Ranges:
Ranges of May

BD Autocars = 11.50
Jamuna Oil = 8.90
Ranges of June

BD Autocars = 10.25
Jamuna Oil = 20.50
Inerquartile Range or Quartile Deviation
Inerquartile Range or Quartile Deviation can’t be determined by ‘Ungrouped Data’.
Page | 19
Average Deviation
Formula: A.D.( Med .) =

∑ | X − Med . |
N
A.D.
Coefficient of A.D.( Med .) =
Median
Here,
A.D. = Average Deviation
X = Observation
Med. = Median
Average Deviation of the Prices of BD Autocars Ltd. of June:
Here,
Median = 191.50
Average Deviation Chart

X, | X − Med . |
Price
190 1.5
191 0.5
190 1.5
191.5 0
190 1.5
187.75 3.75
181.25 10.25
∑ | X − Med. |= 19
A.D.( Med .) =
∑ | X − Med . |
N
19
A.D.( Med .) =
7
A.D.( Med .) = 2.7142
Average Deviations:
Average Deviations of May

Page | 20
Jamuna Oil = 2.1429
Average Deviations of June

Jamuna Oil = 5.9429
Coefficient of Average Deviation of the Prices of Jamuna Oil Ltd. of May:
Here,
A.D. = 2.1429
Median = 263.20
2.1429
∴ Coefficient of A.D.( Med .) =
263.20
= 0.0081
Coefficients of Average Deviations:
Coefficients of Average Deviations of May

Jamuna Oil = 0.0081
Coefficients of Average Deviations of June

Jamuna Oil = 0.0295
Page | 21
Standard Deviation
Formula: σ=
∑(X − X ) 2
; (Deviation taken from Actual Mean)

N
Here,
σ = Standard Deviation
X = Observation
X = Average
∑d ⎛ ∑d ⎞
2 2
σ= −⎜ ⎟ ; (Deviation taken from Assumed Mean)

N ⎜ N ⎟
⎝ ⎠
Here,
d= X−A
A = Assumed Mean
Standard deviation taken from Actual Mean of the Prices of Jamuna Oil Ltd. of
June:
Here,
Average = 207.2429
Standard Deviation Chart

X, ( X − X )2
Prices
210 7.6018
206.9 0.1176
204.3 8.6604
201.3 35.3176
204.9 5.4890
201.5 32.9804
221.8 211.9104
∑ ( X − X ) 2 = 302.0771
302.0771
∴σ =
7
σ = 6.5692
Standard Deviations:
Page | 22
Standard Deviations of May

Jamuna Oil = 2.7570
Standard Deviations of June

Jamuna Oil = 6.5692
Standard deviation taken from Assumed Mean of the Prices of Square

Pharmaceuticals Ltd. of May:
Take,
Assumed Mean = 4660.50
Assumed Mean Chart

X, d, d2
Prices X−A
4552.25 -108.25 11718.0625
4649.00 -11.50 132.25
4679.50 19.00 361
4660.50 0.00 0
4657.25 -3.25 10.5625
4660.50 0.00 0
4733.25 72.75 5292.5625
∑ d = −31.25 ∑ d 2 = 17514.4375
17514.4375 ⎛ − 31.25 ⎞
2
∴σ = −⎜ ⎟
7 ⎝ 7 ⎠
σ = 49.9760
Standard Deviations
Standard Deviations of May
Page | 23
Jamuna Oil = 2.7570
Standard Deviations of June

Jamuna Oil = 6.5692
Combined Standard Deviation
N 1σ 1 + N 2σ 2 + N 1 d1 + N 2 d 2
2 2 2 2
Formula: σ 12 =
N1 + N 2
Here,
N1 = Number of observations of the first group
N 2 = Number of observations of the second group
σ 1 = Standard Deviation of the first group
σ 2 = Standard Deviation of the second group
d1 = | X 1 − X 12| |
d 2 = | X 2 − X 12| |
X 1 = Average of the first group
X 2 = Average of second group
X 12 = Combined Average of the two groups
Combined Standard Deviation of the Prices of Square Pharmaceuticals Ltd.:
Here,
N1 = 7
N2 = 7
σ 1 = 49.8210
Page | 24
σ 2 = 64.0233
X 12 = 5292.25
X 1 = 4656.04
X 2 = 5280.6071
d1 = 312.2836
d 2 = 312.2835
N 1σ 1 + N 2σ 2 + N 1 d1 + N 2 d 2
2 2 2 2
σ 12 =
N1 + N 2
7 × 49.8210 2 + 7 × 64.0233 2 + 7 × 312.2836 2 + 7 × 312.2835 2
σ 12 =
7+7
σ 12 = 317.5084
Combined Standard Deviations

Coefficient of Variation
σ
Formula: C.V . = × 100
X
Here,
C.V . = Coefficient of Variation
X = Arithmetic Mean of the observations
Coefficient of Variation of the prices of Square Pharmaceuticals Ltd. of June:
Here,
σ = 64.0233
X = 5280.6071
64.0233
∴ C.V . = × 100
5280.6071
= 1.2124
Page | 25
Coefficients of Variations
Coefficients of Variations of May

Jamuna Oil = 1.0519
Coefficients of Variations of June

Jamuna Oil = 3.1698
Combined Coefficients of Variations (Combined Standard Deviation×100/Combined

Arithmetic Mean)

Business Statistics Chapter 7: Correlation Analysis

Scatter Diagram
Here the scatter diagrams of the share prices are drawn.
Page | 26

Page | 27

Page | 28

Page | 29
Karl Pearson’s Coefficient of Correlation
Actual Mean Method
Formula: r=
∑ ( X − X )(Y − Y )
∑ ( X − X ) ∑ (Y − Y )
2 2
The above formula can be written as:
r=
∑ xy
∑x ∑y2 2
Where, x = ( X − X ) and y = (Y − Y )
Here,
X = Observation from the first group
X = Arithmetic Mean of the first group
Y = Observation from the second group
Y = Arithmetic Mean of the second group
Calculation of Correlation Coefficient of the prices of Social Investment Bank Ltd.

(of May and June)
Take X as the prices of May and take Y as the prices of June.
Page | 30
Working
May ( X − X ), June (Y − Y ),
Prices, x2 Prices, y2 xy
Day x y
X Y
1 341.0000 +5.2900 27.9841 361.7500 -30.6429 938.9873 -162.1009
2 338.0000 +2.2900 5.2441 357.2500 -35.1429 1235.0234 -80.4772
3 335.7500 +0.0400 0.0016 369.0000 -23.3929 547.2278 -0.9357
4 336.0000 +0.2900 0.0841 431.0000 +38.6071 1490.5082 +11.1961
5 334.0000 -1.7100 2.9241 414.0000 +21.6071 466.8668 -36.9481
6 335.2500 -0.4600 0.2116 414.5000 +22.1071 488.7239 -10.1693
7 330.0000 -5.7100 32.6041 399.2500 +6.8571 47.0198 -39.1540
∑X = ∑x = ∑x 2
= ∑Y = ∑y= ∑y 2
= ∑ xy =
2350.0000 0.0300 69.0537 2746.7500 -0.0003 5214.3571 -318.5893
r=
∑ xy
∑x ∑y
2 2
− 318.5893
r=
69.0537 × 5214.3571
r = −0.5309
Correlation Coefficients between May and June Prices:
Social Investment Bank Ltd. = -0.5309

BD Autocars = -0.6982
Jamuna Oil = -0.5775
Square Pharmaceuticals Ltd. = -0.9390
Assumed Mean Method
N ∑ dxd y − ∑ dx ∑ d y
Formula: r=
N ∑ d x − (∑ d x ) N ∑ d y − (∑ d y )
2 2 2 2
Here,
r = Correlation Coefficient
dx = X − Ax
X = Observation of the first group
Ax = Assumed Mean of the first group
dy = Y − Ay
Y = Observation of the second group
Ay = Assumed Mean of the second group
Page | 31
Calculation of Correlation Coefficient of the prices of Lanka Bangla Finance Ltd.
(of May and June):
Take X as the prices of May and take Y as the prices of June.
May ( X − 131.80) June (Y − 191.10),

Worki 2 2
dxd y
ng Day
Prices, dx dx Prices, dy dy
X Y
1 115.60 -16.20 262.44 175.60 -15.50 240.25 -3982.05
2 121.90 -9.90 98.01 181.10 -10.00 100.00 -990.00
3 127.10 -4.70 22.09 182.20 -8.90 79.21 -372.287
4 131.80 0 0 191.10 0 0 0
5 135.10 +3.30 10.89 210.90 +19.80 392.04 +1293.732
6 137.30 +5.50 30.25 205.20 +14.10 198.81 +1093.455
7 136.70 +4.90 24.01 195.30 +4.20 17.64 +86.436
∑X = ∑d x = ∑d x
2
= ∑Y = ∑d y = ∑d y
2
= ∑d x dy =
905.50 -17.10 447.69 3.70 1027.95 -2780.714
1341.40
(7 × −2780.714) − (−17.10 × 3.70)

∴r =
(7 × 447.69) − (−17.10}2 (7 × 1027.95) − (3.70) 2
∴ r = −4.2949
Correlation Coefficients between May and June Prices:

Lanka Bangla Finance Ltd. = -4.2949
Probable Error of Coefficient of Correlation
1− r2
Formula: P.E.r = 0.6745
N
Here,
P.E.r = Probable error of Coefficient of Correlation
r = Correlation Coefficient
N = Number of observations
Probable Error of Coefficient of Correlation of the prices of May and June of BD

Autocars Ltd.:
Page | 32
1 − (10.2148) 2
P.E.r = 0.6745 ×
7
P.E.r = −26.3457
Probable Errors of Correlation Coefficients of the share prices of May and June:

Lanka Bangla Finance Ltd. = -4.4477
BD Autocars = -26.3457
Rank Correlation Coefficient
6∑ D 2 6∑ D 2
Formula: R = 1− or1 −
N ( N 2 − 1) N3 − N
Here,
R = Rank Correlation Coefficient
D = R1 − R2
R1 = Rank of observation of the first group
R2 = Rank of observation of the second group
Rank Correlation Coefficient of the prices of BD Autocars Ltd. of May and June:
Take, R1 as the Prices of May and R2 as the Prices of June
Rank for Rank for

Working ( R1 − R2 ) 2 ,
May Prices May Prices, June Prices June Prices,
Days D2
R1 R2
1 202.25 4 190.00 1 9
2 203.00 5 191.00 4 1
3 196.50 2 190.00 2 0
4 199.75 3 191.50 5 4
5 196.00 1 190.00 3 4
6 203.75 6 187.75 7 1
7 207.50 7 181.25 6 1
N = 10 ∑D 2
= 20
Page | 33
6∑ D 2
∴ R = 1−
N3 − N
20
∴ R = 1− 3
7 −7
∴ R = 0.6429
Rank Correlation Coefficients:

Jamuna Oil = 0.0000
Business Statistics Chapter 8: Regression Analysis

Regression Equation
Formula:
Regression Equation of X on Y:
X = a + bY
To determine the values of a and b the following two normal equations are
to be solved simultaneously:
∑ X = Na + b∑ Y
∑ XY = a∑ Y + b∑ Y 2
Regression Equation of Y on X:
Y = a + bX
To determine the values of a and b the following two normal equations are
to be solved simultaneously:
∑ Y = Na + b∑ X
∑ XY = a∑ X + b∑ X 2
Regression Equation of the prices of Jamuna Oil Ltd.:
May Prices, X X2 June Prices, Y Y2 XY

265.50 70490.25 210.00 44100.00 55755.00
Page | 34
263.30 69326.89 206.90 42807.61 54476.77
264.40 69907.36 204.30 41738.49 54016.92
263.20 69274.24 201.30 40521.69 52982.16
261.00 68121.00 204.90 41984.01 53478.90
260.60 67912.36 201.50 40602.25 52510.90
256.60 65843.56 221.80 49195.24 56913.88
∑ X = 1834.60 ∑ X 2
= 480875.66 ∑ Y = 1450.70 ∑ Y 2
=300949.29 ∑ XY =
380134.53
From this, using the formula, we can say that-

1834.60 = 7a + 1450.70b
380134.53 = 1450.70a + 300949.29b
From these equations, we get-

a = 312.3160
b = -0.2424
Then the regression equation of the prices of May on the prices of June of Jamuna Oil
Ltd. is –
X = 312.3160 – 0.2424Y
Regression equations:
Price of May on Price of June
Social Investment Bank Ltd. → X = 359.6885 – 0.0611Y
Lanka Bangla Finance Ltd. → X = 23.9350 + 0.5504Y
BD Autocars Ltd. → X = 355.2364 – 0.8157Y
Jamuna Oil Ltd. → X = 312.3160 – 0.2424Y
Square Pharmaceuticals Ltd. → X = 8514.7970 – 0.7307Y
Price of June on Price of May
Social Investment Bank Ltd. → Y = 1941.1260 – 4.6132X

Lanka Bangla Finance Ltd. → Y = 11.7540 + 1.3905X
BD Autocars Ltd. → Y = 309.0680 – 0.5977X
Jamuna Oil Ltd. → Y = 567.8763 – 1.3760X
Square Pharmaceuticals Ltd. → Y = 10898.4480 – 1.2066X
Page | 35
Regression Equation using Arithmetic Mean
Formula: Y − Y = b yx ( X − X )
X − X = bxy (Y − Y )
Here,
X = Observation of the first group
Y = Observation of the second group
X = Arithmetic Mean of the first group
Y = Arithmetic Mean of the second group
b yx =
∑ xy and b = ∑ xy
∑ x2 ∑ y2
xy
x = X−X
y = Y −Y
Regression Equation of the prices of Square Pharmaceuticals Ltd.:
Working May June

Day Prices, X x=X−X x2 Prices, Y
y = Y −Y y2 xy
1 4552.25 -103.7860 10771.4745 5397.25 5397.25 13605.56 -12105.900

2 4649.00 -7.0357 49.5013 5295.50 5295.50 221.7972 -104.7820
3 4679.50 23.4643 550.5727 5293.25 5293.25 159.8418 296.6556
4 4660.50 4.4643 19.9298 5292.25 5292.75 135.5561 51.9770
5 4657.25 1.2143 1.4745 5273.75 5273.75 47.0204 -8.3265
6 4660.50 4.4643 19.9298 5247.50 5247.50 1096.0830 -147.8000
7 4733.25 77.2143 5962.0459 5164.75 5164.75 28688.7300 -8945.8300
Total 32592.25 0.0000 17374.9300 36964.25 0.0000 28688.73 -20963.96
Here,
X = 32592.25 and Y = 5280.6071
− 20963.96
b yx =
17374.9300
b yx = 1.2066
Then the equation of the price of June on price of May of Square Pharmaceuticals Ltd. is-
(Y − 32592.25) = 1.2066( X − 5280.6071)
Or, Y = 10898.4480 – 1.2066X
Regression equations:
Price of May on Price of June
Social Investment Bank Ltd. → X = 359.6885 – 0.0611Y
Page | 36
Lanka Bangla Finance Ltd. → X = 23.9350 + 0.5504Y
BD Autocars Ltd. → X = 355.2364 – 0.8157Y
Jamuna Oil Ltd. → X = 312.3160 – 0.2424Y
Square Pharmaceuticals Ltd. → X = 8514.7970 – 0.7307Y
Price of June on Price of May
Social Investment Bank Ltd. → Y = 1941.1260 – 4.6132X

Lanka Bangla Finance Ltd. → Y = 11.7540 + 1.3905X
BD Autocars Ltd. → Y = 309.0680 – 0.5977X
Jamuna Oil Ltd. → Y = 567.8763 – 1.3760X
Square Pharmaceuticals Ltd. → Y = 10898.4480 – 1.2066X
Page | 37
Chapter 3
Report Ending

Conclusion
It was really a tough job to complete this report without any error. But our group work made this
possible to make this without any error. We are thanking again to the Almighty, you who gave us
such an assignment and those who helped us and made this report more beautiful and complete
in information.
Page | 39

Appendix

We have collected our all the data from newspaper. We have attached the copies of the paper
with this report.

Statistical Analysis On Stock Prices

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Statistical Analysis On Stock Prices

Загружено:

Авторское право:

Доступные форматы

Wednesday, July 23, 2008

Analysis of Share Prices

Date of Submission: July 23, 2008

July 23, 2008

Abdur Rakib Akon (070305)

Md Masrul Mollah (070314)

Md Nazmul Huda (070323)

SM Mazharul Islam (070351)

2nd Year, 1st Term

Contents Page No.

Summary of the report 01

Part 1: Introduction 01-05

Part 2: Statistical Analysis 06-37

Part 3: Statistical Analysis 38-39

Date Social Lanka Bangla BD Autocars Jamuna Oil Square

The date of submission of this report is July 23, 2008.

Purpose of the Report

The purposes of our report are-

• To make a clear concept through making a relationship between my report writing

• To gather knowledge about ‘Stock Exchange’.

Scopes of the Report

Time Limit & Exam Time

Sources of collecting data

No primary sources found.

The ‘Daily Prothom-Alo’

Business Statistics Chapter 3: Presentation of Data

Our collected data is in a chronological order. So it can be defined as a ‘Chronological

Our collected data can’t be distributed in fixed frequency.

Table 2.1: Prices of Shares (in tk.)

Investment Bangla Autocars Ltd. Pharmaceuticals

06 May 2008 336.00 131.80 199.75 263.20 4660.50

04 June 2008 431.00 191.10 191.50 201.30 5292.25

The table we have presented is a ‘Simple Table’.

The diagrams of the rates of the shares are given below -

Business Statistics Chapter 4: Measures of Central Tendency

We have calculated the ‘Arithmetic Mean’ in two approaches -

If the subscripts are dropped, the formula becomes:

Average of the Prices of Social Investment Bank Ltd. of May:

Social Investment Bank Ltd. = 335.71

Social Investment Bank Ltd. = 392.3929

Average of the prices of Social Investment Bank Ltd. of June:

Calculation of Average Price

Social Investment Bank Ltd. = 392.3929

Combined Arithmetic Mean

Social Investment Bank Ltd. = 364.0515

Social Investment Bank Ltd. = 336.00

Social Investment Bank Ltd. = 431.00

Quartiles, Deciles, Percentiles etc.

Social Investment Bank Ltd. = No mode

Social Investment Bank Ltd. = No mode

Mode is calculated by determining the value repeated most.

Formula: G.M . = anti log

Geometric Mean of Prices Lanka Bangla Finance Ltd. of May:

Log List of Prices

Geometric Means of May

Social Investment Bank Ltd. = 335.6996

Geometric Means of June

Social Investment Bank Ltd. = 391.4397

Harmonic Means of May

Social Investment Bank Ltd. = 335.6849

Harmonic Means of June

Social Investment Bank Ltd. = 390.4852

Range of the prices of BD Autocars Ltd. of May: