SCENARIO

You have been appointed as a trainee consultant at ASOS plc. The Chief Executive Officer is concerned about the volatility in the company’s share price over the most recent month. Particularly, he is concerned that the share price has become more volatile that the share price of Boohoo Group plc, one of the company’s closest competitor. In response to the increasing trend in online shopping, the Chief Technology Officer has proposed the development of a new software that will improve operations at the company. But there are some concerns that should the new software fail to achieve its objectives, the volatility of the share price would increase. In order to assess the probability of success for the new software, the CTO plans to conduct an experiment. A trial of the new software will be repeated each day of the week, from Monday to Friday and the probability that the trial succeeds on a given day as been estimated at 0.7.

YOUR TASK

Note: Before completing this task, you should obtain daily time-series data of historical share prices for both ASOS plc and Boohoo Group plc for the most recent month. These can be obtained from websites such as Yahoo! Finance – https://uk.finance.yahoo.com/. You should produce a report that includes the following: A presentation of the daily time-series data of historical share prices for both ASOS plc and Boohoo Group plc for the most recent month (2 time-series);

Calculations and interpretation of measures of measures of central tendency and measures of variability for the 2 time-series.

A presentation and analysis of appropriate statistical graphs for the 2 time series.

Calculations of the probabilities that the trial of the new software will succeed in one day only the trial of the new software will succeed in two days only the trial of the new software will succeed in three days only the trial of the new software will succeed in four days only the trial of the new software will succeed in all five days Conclusions and recommendations on the volatility of the share price and whether the new software should be introduced.