Figure 2.1 depicts the frequency of the daily adjusted closing stock prices falling within evenly allocated data ranges. The frequency of prices fitting within the ranges of adjusted closingstock prices is marked on the y-axis while the ranges of the adjust closing stick prices are markedon the x-axis. Skewed to the left, the histogram shows the majority of the data points fall within the higher ranges of the daily closing stock prices. This indicates that the median is greater than the average and suggest instability T-Mobile’s adjusted daily closing stock prices.
6Applying Analytic Techniques to Business3,599,875 6,729,650 9,859,425 12,989,200 16,118,975 19,248,750 22,378,525 25,508,300 28,638,075 31,767,850 34,897,625 38,027,400 41,157,175 44,286,950 47,416,725 50,546,500 53,676,275 56,806,050 59,935,825 63,065,600 More020406080100120140160180200182603310100000000000010Stock Trading VolumeFrequencyRanges of Stock Trade VolumeNumber of OccurencesFigure 2.2. Histogram of stock volume of Microsoft based on data from Yahoo Finance (2019)The histogram shown in Figure 2.2 exhibits the number of occurrences of T-Mobile’s daily stock volumes being bought or sold between January 2019 to January 2020. The x-axis is the ranges of stock volume and the y-axis is the number of occurrences of stock volumes falling within the scope. Since the histogram is skewed to the right, it will indicate that the bulk of the daily stock volume data points fall within the lower ranges of T-Mobile’s stock volume, resultingin the median being less than the mean. The graph clearly depicts an unequal distribution providing difficulty in predicting the daily stock volume. Descriptive StatisticsMean, Median, and Standard Deviation of Adjusted Closing Stock PricesThe average value of a T-Mobile’s adjusted closing stock prices is 75.74 U.S. dollars. This number represents the mean. The mean or average is calculated by summing the numbers inthe data set and then dividing it by the number of values in that set. This average price is indicative of T-Mobile’s growth in revenue as they can boast being the only wireless carrier to post a growth in profits for 19 consecutive quarters.
7Applying Analytic Techniques to BusinessThe median is the data point that corresponds to the middle value in the data set. From January 2019 to January 2020 the middle value of the data set was 76.48. When the median is greater than the mean resulting in the data set being negatively skewed. This is generally caused by outliers on the lower side of the stock price. This difference in mean and median indicate irregular frequencies in the distribution of values for adjusted closing prices. Standard deviation is a statistic that measures the distribution of a dataset relative to its mean (Investopedia). The standard deviation is also an indicator of the volatility in the stock pricing. With T-Mobile’s stockthe standard deviation is 3.87 US dollars suggests moderate risk in the purchase of shares.