BEassignment.docVIP

2. -Describe the properties of your dataset using descriptive statistics There are overall five different variables which are listed as follows: S - Stock price of Texas Instruments Inc; FED - Federal Funds Rate; IP - The level of industrial production; NSR - Month-to-month nominal stock returns; GIND - Month-to-month growth rate of industrial production. S-The nominal stock price of Texas Instruments Figure 1.1 Figure 1.1 illustrates the main statistical character of the nominal stock price of Texas Instruments. From the table above, the Mean value of stock price is 14.10789 and the Std. Dev is 14.35362. Furthermore, the Maximum and Minimum of S is 85.82000 and 1.570000 respectively. From the bar chart, the max amount is distributed in the first two months. As a result, the range of this stock price is 87.39. Figure 1.2 describes the trends of the stock price of Texas Instruments during the period between Jan 1980 and Dec 2009. As the line chart shows below, the stock price between 1980 and 1995 kept a steady trend and had slight fluctuations. Then, it had a significant upward trend and reached the peak in year 2000. After that, the trend has a rapid decline and experienced a trend of fluctuation. Figure 1.2 FED-Federal funds Rate (effective) Figure 2.1 As it listed in figure 2.1, the average of the short-term interest rate is 6.021806, and the amount of Standard Deviation is 3.788643. It is not higher than the level of Stock Price and Industrial Production. Figure 2.2 According to figure 2.2, there is an overall downward trend for the amount of FED during the period between 1980 and 2009. It had a fierce fluctuation during the first three years and reached a peak at about 19 in this period. Then, it experienced a steady decline till the end of 2009. IP-The Level of Industrial Production Figure 3.1 Figure 3.1 illustrates the distribution of Industrial Production level between 1980 and 2009. The Mean value of the data is 73.11000, which