Assessment 2

Using Analytic Techniques to Add Meaning to Data

Instructions

Download data on a company's stock history. From this data, create scatterplots, histograms, and
calculate the mean, median, mode, and standard deviation of some data points. Write a 5-8 page report
including the graphs and descriptive statistics you have created.

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Introduction

Business analytics techniques are used to facilitate decision making by transforming large
amounts of raw data into meaningful information. Many businesses rely on analysis of
relevant historical data to make key strategic and operational decisions. Therefore,
understanding how to use techniques such as graphical representation and descriptive
statistics to translate raw data into useful information can be a valuable skill in an
organization.

In this assessment and the next, you will have the opportunity to sharpen your analytics
skills by locating and interpreting real-life stock data.
 You have been learning about how to explore data. In this assessment, you will apply those
skills by downloading a practical dataset and creating graphical representations of that data.
The work you do in this assessment will lay the foundation for future assessments in which
you analyze and interpret those graphical representations. Since the purpose of business
analytics is to make sense of large quantities of raw data, this assessment helps you
develop skills in applying analytics to business contexts by practicing the exploration and
display of data.

In addition to graphical and tabular summary methods, numeric or quantitative variables

and data can be summarized numerically using various techniques of description and
display.

Descriptive methods, which describe existing data, are also methods for using a subset of
the available data to estimate or test a theory about a measurement on a larger group. This
larger group is called the population, and the measurement being studied is the parameter.
The smaller group, or subset, of the population that is taken in order to make an inference
(to make an estimate or test a theory) is referred to as the sample. The measurement taken
on that sample is then referred to as the statistic, which is usually the best single-number
estimate for the population parameter of interest. Most often, however, the estimate should
not be restricted to a single number that would be exactly correct or incorrect. Instead, it is
preferable to calculate some range of possible values between which there can be a certain
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Scenario

Business analytics techniques are used to facilitate decision making by transforming large
amounts of raw data into meaningful information. Many businesses rely on analysis of
relevant historical data to make key strategic and operational decisions with the goal of
gaining or maintaining competitive advantage. Therefore, understanding how to use
techniques such as graphical representation and descriptive statistics to translate raw data
into useful information can be a valuable skill in an organization.
 In this assessment and the next, you will have the opportunity to sharpen your analytics
skills by locating and interpreting real-life stock data, creating a business report, and
presenting the information from the business report with your supervisor and colleagues as
part of a decision-making effort.

Your Role

You are a member of a business analyst group interested in a publicly traded company.
Your supervisor has asked you to create a presentation, including graphical representations
from raw stock data. From that raw stock data, you are to create a business report for a
company-wide meeting at the end of the quarter. Your work and the work of others will
result in a Business Report, which will be utilized to help company leadership make
decisions.

Your first task is to pick a publicly held company with only one business platform. So do not
pick Apple, Amazon, Disney, et cetera. You want a company that plays in only one industry.
Then you are to provide an overview of the company, including business context.
Remember that business context includes many aspects of the company, industry,
competition, et cetera.

The second task is prepping stock history data from the business or company and creating
scatter plots and a histograms.

The third task is to calculate mean, median, mode, and standard deviation of the adjusted
daily closing stock price and the stock volume.

The fourth task is to provide a summary of the information you provide (including data
analysis) without bias and with factual information including citations.

It is your responsibility to present visually and to interpret the data into meaningful
information using analysis and descriptive statistics.
Instructions

Select a publicly traded business or stock that plays in only one industry in which you have
interest. Download the raw data on the company's stock history.

Follow these steps to locate and download stock history from Yahoo! Finance:

Go to Yahoo Finance .
Search for and find the stock information of your chosen company. Remember do not
use a company that plays in multiple industries.
Once you pull up the general data on the company, review the screen links throughout
until you find the link for Historical Data. Click on the Historical Data link. Then select the
following settings above the table:
Select Time Period of one year.
Select "Historical Prices."
Select Frequency as "Daily."
Click Apply.
Click Download Data. Go to the bottom of your screen or your Downloads folder to
open the Excel file you just downloaded. Open the Excel file. Check to be sure that
you have enough lines to show the whole year. If not, reset the settings at the top of
the Historical Data chart and try again.
Once you are sure that you have a year’s worth of data, save the Excel file.

Using the Excel file with the year’s stock data, conduct descriptive analysis as follows:

1. Create a scatter plot of the highest stock price (in the column labeled "High") against
time. Write several sentences explaining the process/steps by which you created this
graph.
2. Create a scatter plot of the lowest stock price (in the column labeled "Low") against
time. Write several sentences explaining the process/steps by which you created this
graph.
 3. Create a histogram of the adjusted daily closing stock price (in the column labeled "Adj
Close"). Make sure the histogram is meaningful by adjusting the bin size so you can see
the shape of the histogram. Write several sentences explaining the process/steps by
which you created this graph.
4. Create a histogram of the stock trading volume (in the column labeled "Volume"). Make
sure the histogram is meaningful by adjusting the bin size so you can see the shape of
the histogram. Write several sentences explaining the process/steps by which you
created each graph.
5. Complete the following for each of the four graphs:
Make sure the x and y axis have appropriate labels—“Stock Price in USD” or “Date
D/M/Y” for example.
Change the title of the graph to communicated what the graph is communicating.
Add options—color, trendlines, legend, other?
6. Calculate the mean, median, mode, and standard deviation of the adjusted daily closing
stock price.
7. Put answers of calculations in table format for easy review.
8. Write several sentences explaining the process by which you calculated these statistics.
9. Calculate the mean, median, mode, and standard deviation of the stock volume. Put in
table format for easy review. Write a sentence explaining the process by which you
calculated these statistics.
10. Prepare a 5-8 page report that you would present to your supervisor, including the
following:
An APA-formatted title page.
A 1-2 page introduction describing the background of your chosen company and its
practical extensive business context. You should use at least four sources of
information on the company, industries the company participates in, history, mission,
platforms, products, competitive advantage, and competitors by industry.
A section labeled Graphical Representations of Data, in which you include the four
graphs you created above and short descriptions of the process you used to create
each graph.
 A section labeled Descriptive Statistics, in which you include the statistics you
calculated above and explanation of the procedures you followed to calculate the
statistics.
A summary of what the data suggests. No opinion please. See textbook information
on how to interpret data. Please remain unbiased in your summary. You may use
additional resources (and cite) to help you interpret the data. For example: What
does Standard Deviation say about stock volatility?

Your paper should be APA-formatted with in-text citations and a corresponding references
page. Remember to cite the sources of your financial data. Include at least four sources of
information for your page and reflect on reference page.

Walkthrough: You may view the following media piece to help you understand concepts
addressed in this assessment:

Additional Requirements

Length: 5-8 pages, double-spaced. Include a title page and the graphical
representations of the data selected.
Written communication: Written communication should be free of errors that detract
from the overall message.

Evaluation

By successfully completing this assessment, you will demonstrate your proficiency in the
following course competencies through corresponding scoring guide criteria:

Competency 2: Use analytic and statistical techniques to make meaning of large

quantities of data.
 Create four different graphical representations of data.
Calculate descriptive statistics for two different variables.
Summarize the processes by which each graph and statistics were created and
calculated.
Competency 4: Present the results of data analysis in clear and meaningful ways to
multiple stakeholders.
Introduce the company and practical business context.
Correctly format citations and references using current APA style.
Write content clearly and logically with correct use of grammar, punctuation, and
mechanics.

Scoring Guide
Use the scoring guide to understand how your assessment will be evaluated.
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