I figured out difference between opening and closing values in excel. But, 1. Ho

Question

I figured out difference between opening and closing values in excel. But, 1. How do you find the probability each stock's value went down on a randomly given day? 2. Find the average closing value for each stock. For each stock, find the probability that a randomly chosen day had a closing value above the mean value.
Excel not screen shot but how do calculate each question? I can email you spreadsheet if you orivide email back. Thanks! For this part of the project, you are going to use data from the following three stocks: Microsoft (MSFD, Apple (AAPL) and Staples (SPLS) for 2015. 1) Find the difference between opening and closing values for each day for each stock. Using this information, for each stock, find the probability each stock's value went down on a randomly given day. 2) Find the average closing value for each stock. For each stock, find the probability that a randomly chosen day had a closing value above the mean value. 3) Based on your information, which stocks did well on a daily basis in 2015? Which stocks did poorly? Why?

Explanation / Answer

Let me give the simple procedure to find the probability each stock's value went down on a randomly given day.

Count the negative values in the difference column (that is opening value - closing value)

Suppose we got 12 negative values out of 50 then 12 is our success.

Now using classical defination of probability find the probability of success.

In the above example probability of each stock's value went down on a randomly given day = 12/50

Note that you need to count all the negative values in the difference table.

2) First find the average of closing values

Suppose I have five values 1, 4, 5, 3, 8 then average = (1 + 4 + 5 + 3+ 7)/5 = 4

Now find the values above the mean(that is average)

In the above similar example 5 anf 7 that is two values which are greater than (above ) the average

So probability = 2/5 = 0.4

Use the above procedure to find the probability for your data set

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