Posted by **statistics** on Thursday, July 30, 2009 at 12:20pm.

I'm not following this problem at all I understand the terms such as median quartile and such but I just don't understand stocks so can you lend me a hand

The rate of return on a stock is its change in price plus any dividends paid, usually measured in percent of the stating value. We have data on the monthly rate of return of the stock of Wal-Mart stores fro the years 1973 to 1991, the first 19 years Wal-Mart was listed on the New York Stock Exchange. There are 228 observations. Here is the output from the computer statistical package SPLUS that describes the distribution of these data

the book then give 5 number summary then the stemplot with the outliers listed separately

the question

If you had 1 grand worth of Wal-Mart stock at the beginning for the best month during these 19 years, how much would your stock be worth at the end of the month?

The highest outlier listed separately is

58.67769

so I'm not exactly sure what to do what that number and 1 grand to find the value at the end of the month...

thanks!

- statistics -
**economyst**, Thursday, July 30, 2009 at 5:57pm
You have posted this before.

I dont see any output from the computer package., I dont see any graphic with outliers. So, it will be difficult to help.

If you want the greatest rate of return, start with a purchase when the stock price is the lowest and sell when it is the highest. Shares purchased will be S= 1000/P(lo). Find the sum of the dividends paid per share, times the number of shares. The rate of return will be (P(hi)/P(lo)) *1000. + sum(dividends) / 1000.

Without seeing your stem-plot I have no idea about what to do with the outliers.

Lotsa luck.

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