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# In the last assessment, you were asked to prepare the first part of your analytics report by creating graphs and calculating some descriptive statis

## 26 Apr In the last assessment, you were asked to prepare the first part of your analytics report by creating graphs and calculating some descriptive statis

In the last assessment, you were asked to prepare the first part of your analytics report by creating graphs and calculating some descriptive statistics. In this assessment, you will write your 5-8 page analytics report by interpreting those graphs and statistics, and explicitly connecting those interpretations to implications in the practical business context.

The first step in creating meaningful information from raw data is to represent the data effectively in graphical format and to calculate any required statistics. The second step is interpreting and explaining those graphs and statistics in order to apply them in the business context.

In the previous assessment, you were asked to create the first part of your analytics report by preparing graphs and calculating some descriptive statistics. In this assessment, you will complete your analytics report by interpreting those graphs and statistics, and connecting those interpretations explicitly to implications in the business context.

In business and applied analytics, oftentimes you are interested in drawing conclusions about a population of interest. However, it may not be feasible or practical to gather data on the entire population. In those cases, data is gathered from a sample or subset of the population. Analyses done on the sample are then used to draw inferences regarding the overall population; this mathematic process is referred to asinferential statistics. In this assessment, we begin discussing the topics of sampling and drawing inferences.

All the inferential statistical techniques and methods covered in this course are considered parametric techniques and require certain assumptions to be used and for the results to be reliable, many of which are assumptions about an underlying distribution. Nonparametric techniques require no assumption about underlying distributions and are often used when the assumptions of parametric techniques are not met. Although these are beyond the scope of this introductory course, they are a great option for additional reading and research.

Analytics projects often result in two distinct types of reports or summaries: one tailored to the executive level, which takes the form of a presentation, and the other, a detailed analytics report, which documents an analysis so thoroughly that another analyst can reproduce the analysis exactly. Many times, the latter type is referred to by other departments or analysts wishing to conduct a similar analysis on similar data or by the same analyst who wants to repeat the analysis on a new or revised set of data. In this assessment, you will learn the essential elements that should be included in a report at this level of detail and you will create your own analytics report addressing the business problem you have been working on.

#### Scenario

The first step in creating meaningful information to develop a business report for decision making. The business report includes the analyzed raw data, effectively presents the analysis results in text and graphical format, as well as calculate any required statistics.

The second step is interpreting and explaining the graphs and statistics to understand the impact in the practical business context.

In the last assessment, you were asked to create the first part of your business analytics report by introducing a company, analyzing company stock data, developing graphs, and calculating some descriptive statistics.

In this assessment, you will adjust your business report to minimize limitations of one year’s worth of data. You will use the same company for this assessment and you will use 5 years of data!

You will also enhance your introduction or business context section of your business report based on your new graphs and your interpretation of the data graphs and descriptive statistics over a five year period. Your interpretation efforts of graphs and descriptive statistics will explicitly connect in the conclusion area. Conclusions and recommendations are the final effort in the development of a practical business report and should be supported by citations. Remember that opinion is not allowed.

Your supervisor has asked you to prepare a report for the quarterly company meeting. The first part of the task was to download the data and create scatterplots and histograms, and to calculate mean, median, and mode of 5 years of stock prices for your report. Now you must analyze and interpret those graphical representations of the company stock and write the report of your findings and recommendations for your supervisor.

You are an analyst using the same company and five years of stock data. Having accessed the company data and placed it in an appropriate graphical format, you must now use descriptive statistics and analysis to develop a report to inform business decisions.

#### Instructions

After reviewing and integrating your instructor’s feedback on your previous Assessment, complete the report as follows:

• For each graph you created, write at least one well supported paragraph interpreting the graph: What does that graph represent? What does the shape of the graph tell you about how the data have changed over time?
• For each statistic you calculated, include at least two to three well-supported sentences explaining what the statistic represents:
• What does the mean tell you? How do you know?
• What does it imply if the median is different from the mean?
• What does the standard deviation tell you about the volatility of the data?
• Write a new conclusions section in which you explain how these interpretations can be used in the company:
• What are some trends about which company leaders should be aware?
• How might the information you have provided be used in decision making in the company?
• What are other analysts indicating about the stock?
• Explicitly connect other analysts’ comments and recommendations to your interpretations to possible impact to the business context
• Lastly, should your company invest of partner with the company or stock being evaluated?

Create a 5-8 page report containing:

• APA-formatted title page.
• 1-2 page introduction of your chosen company that you created in your previous assessment.
• Section labeled Graphical Representations of Data that includes the four graphs you created as well as your interpretations of the graphs.
• Section labeled Descriptive Statistics, with the statistics you calculated as well as your interpretations of the statistics.
• One-page conclusion in which you describe the potential business applications of the data and interpretations.
• APA-formatted references page (remember to cite the source of your financial data, analyst comments and support for your interpretations).

Example Assessment: You may use the following to give you an idea of what a Proficient or higher rating on the scoring guide would look like:

Assessment 3 Example [PDF].

Attached is previous paper for clarity

8

Using Analytic Techniques to Add Meaning to Data

Devan Pouncy

Capella University

Professor: Alex Amegashie

FPX5008

April 13, 2022

General Motors Stock Analysis

Introduction

General Motors Company is a multinational automotive manufacturing organization headquartered in Detroit, Michigan. The company operates in the industry of automotive and it is traded as a GM S&P 100 component. It was founded by Charles Stewart, William C. Durant, and Frederic L. Smith in 1908 in Flint, Michigan, United States. As of 2020, the company had employed over 155000 employees, and its revenue stood at \$122.5 billion (Yahoo finance, 2022). The company has four core automobile brands, including Buick, Cadillac, GMC, and Chevrolet. Along with its partners, the company designs manufactures and markets trucks, cars, and automobile parts across the globe. It also offers services related to automotive financing through its General Motors Financial Company which is among its subsidiaries. It sells trucks and cars to daily rental car entities, commercial fleet end-users, governments, and leasing organizations directly or through its dealers’ network (Reuters, 2022). Currently, the company operates in North America, the Middle East, South America, Asia Pacific, and Africa. It is ranked at position 22 on the Fortune 500 of the largest corporations in the United States by revenue. It operates in more than eight countries. During its earlier period after its establishment, it led the world market in the automaker industry for over 77 consecutive years until Toyota overtook it in 2008 (Klier and Rubeistain, 2022). The company’s vision is to reduce crashes, emissions, congestions to zero level (General Motors, 2022). One of the common competitive advantages of the company is the cost leadership strategy that it employs in its marketing strategy. The approach helps the company to offer attractive low costs and corresponding low prices of its vehicles. It operates in one of the competitive automobiles industries, with major players such as Ford Motor, Tesla Motors, Honda, and Chrysler offering it competitive pressures.

Graphical Representations of Data

Scatter plot of the highest stock price

To create a scatter plot for the highest stock price, you select the whole column labeled High. Then, select the column labeled time. After selecting, click the Scatter on the insert tab chart command button. Select the subtype of Chart without any lines. Confirm the chart data with the organization values as presented in its stock data.

Scatter plot of the lowest stock price

Similar to the first graph, select the whole column labeled Low. Then, select the column labeled time. Click the Scatter on the insert tab chart command button. Select the subtype of Chart without any lines. Confirm the chart data with the organization values as presented in its stock data.

Histogram of the adjusted daily closing stock price

To create the histogram for the adjusted closing price, find the minimum value of the set of data from the column labeled adjusted closing price using the formula Excel’s MIN() function. Likewise, find the maximum value of the set of data using the formula Excel’s MAX() function. The, obtain the different between the maximum and minimum values as range. Open the data analysis dialog box through data tab followed by analysis commands group. From the data analysis dialog box, select the option with Histogram. The histogram dialog box will appear where you input the range obtained from the difference between the maximum value and the minimum value.

Histogram of the stock trading volume

Similarly, to create a histogram for stock trading volume, find the minimum value of the set of data from the column labeled volume using the formula Excel’s MIN() function. Likewise, find the maximum value of the set of data using the formula Excel’s MAX() function. The, obtain the different between the maximum and minimum values as range. Open the data analysis dialog box through data tab followed by analysis commands group. From the data analysis dialog box, select the option with Histogram. The histogram dialog box will appear where you input the range obtained from the difference between the maximum value and the minimum value.

Descriptive Statistics

Calculating the Mean, Median and Mode

To calculate the mean for the first graph, click on an empty cell followed by the formula AVERAGE (C2:C255). Press enter on the keyboard to display the result mean, 55.39923 for the column labeled High. Based on Medium, you select a cell where the median result will be displaced. In the selected cell, you type the formula =MEDIAN (C2:C255), which in our case was 56.755 for the column labeled High. On the other hand, to calculate the mode, you take the data into a single column for each set. For instance, one can type the data into F1 to F20 if they have one data set. In the cell that should display the mode result, type the formula MODE (F1: F20) to obtain the mode. Based on our case, the model was 57.74 for the column labeled High. Also, for the standard deviation, you calculate the mean, and for each value, you calculate the distance to the mean result. You then square the distance of each number and then find the total of the values. The answer is then divided by the number of data points. The square root is calculated to obtain the standard deviation for the obtained value. The short form in excel is by using the formula STDEV.P function, which will execute all the steps at once. The steps are followed when calculating the mean, median, mode, and standard deviation for the scatter plot of the lowest stock price, histogram of the adjusted daily closing stock price, and histogram of the stock trading volume graphs.

Summary

A high stock price means that the company’s P/E ratio is higher, thereby making it harder for the shareholder to purchase its shares. A high stock price indicates when its stock price is at its highest level. Based on the graph, the company retained its high stock price at an average of 55.00 throughout the 52 weeks (Stock Analysis, 2022). The value never went higher or lower, thus making it easier for shareholders to identify their fate after purchasing its stock. On the other side, the company’s lowest price indicated the lowest point when it sold its stocks cheapest to the shareholders. It retained its lowest price at an average of 53.80 throughout the 52 weeks.

The adjusted closing price amended the company stock’s closing price, which reflected the value of stock after accounting for any actions by the organization. It showed the raw price, which could be used as the cash value of the last transaction price before the market’s closure. Based on the graph, the closing price of General Motors was higher during the earliest of 2021, and it became lower as days were moving towards 2022. On the other hand, A standard deviation (or σ) measures how dispersed the data is in relation to the mean. Low standard deviation means data are clustered around the mean, and high standard deviation indicates data are more spread out. The company’s volatility of its stocks was highly conspicuous in the beginning of 2021. It earned \$2.25 a share in the 2021 first quarter in comparison to 2022 first quarter (Macroaxis, 2022). The company had a volatility of 2.65 and is 2.52 times more volatile than DOW. Twenty two of all equities and portfolios are less risky than GM.

A price by volume, the histogram chart shows the company’s volume of shares traded over a given frame of time. The price by volume was listed on the Y-axis of the histogram, while the frequency was listed on Y-axis. Based on the graph, it is evident that most volumes throughout 2021 to 2022 were at the frequency of 7. This indicates that the point that reflects the volume of 16.9 million served as the key areas that supported and offered resistance to the company towards the end of the period.

In conclusion, the stock of General Motors is up to eight percent year-to-date. Although it is better than having none, the company’s stock is underperforming compared to the twenty percent gains by the S&P 500. Based on the analysis above, it is evident that a consensus target price beyond the market of \$47 will reflect a 30 percent upside along with a four percent dividend. These make the organization look more compelling in purchasing its stock today. One major pro for General Motors stock is the company’s fresh new deal with the United Autoworkers, the massive union that, for many carmakers, can spell gloom or doom should a strike arise. Putting 48,000 workers back to work under a four-year deal cannot be bad for GM shareholders, who need peace of mind after a month of nervous worrying about production problems.

References

Klier, T., & Rubenstein, J. (2020). Overview of the US Automobile Industry. In New Frontiers of the Automobile Industry (pp. 41-66). Palgrave Macmillan, Cham.

https://www.macroaxis.com/volatility/GM/General-Motors

https://www.reuters.com/companies/GM.N

Scott, P. (2022). General Motors’ other franchise system: Creating an effective distribution model for Frigidaire. Business History64(1), 183-200.

https://www.stock-analysis-on.net/NYSE/Company/General-Motors-Co/DCF/CAPM

https://finance.yahoo.com/quote/GM/history?p=GM

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Histogram

Count

< = 43 < = 48 < = 53 < = 58 < = 63 < = 68 < = 73 < = 78 < = 83 < = 88 > 88 14 21 50 81 78 10 0 0 0 0 0

Closing price

Frequency

Histogram

Count

< = 8400000 < = 8900000 < = 9400000 < = 9900000 < = 10400000 < = 10900000 < = 11400000 < = 11900000 < = 12400000 < = 12900000 > 12900000 1 1 4 3 5 8 8 11 12 8 11

Volume

Frequency