Assignment 2

# B the histogram of value stocks appears to be

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b) The histogram of value stocks appears to be unimodal with a peak in bin (1,2]. The histogram of growth stocks appears to be bimodal (or possibily multimodal if we include the peak in bin (-3,-2]). Both histograms are relatively symmetric except for one extreme outlier on the left side of the histogram. c) Value Growth Mean 1.391 1.169 St. Dev 3.996 4.569 Minimum -19.550 -22.138 Q1 -0.797 -1.757 Median 1.427 1.235 Q3 3.699 3.826 2

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Maximum 15.327 14.271 d) According to the data, it appears the value stock offers the best investment. They have a greater average return, lower minimum return and a greater maximum return. e) i) See chart below. ii) The scatterplot shows a linear shape with a postive association. The correlation appears to be very strong (lots of clustering around the line) with no outliers ([-19.550, -22.138] is not an outlier because it doesn’t have significant vertical deviation). iii) The scatterplot shows you the positive relationship between the two variables and the strength of their correlation. We can see what may cause the variability between the data points, and how they are linked. We would not be able to see this in time plots.
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