Assignment on

Descriptive Statistics

Course Title: Applied Research Method

Course Code: 5105

Prepared for:
Pappu Kumar Dey
Assistant Professor
Dept. of Accounting and Information Systems,
Jahangirnagar University

Prepared by:
Md. Taiyebur Rahman Sheikh
ID: 1236
6th Batch
Department of Accounting and Information Systems
Faculty of Business StudieS
Jahangirnagar University

Date of Submission: 11th October, 2021.

Descriptive Statistics:
The descriptive statistics shows the mean, variance, standard deviation, median, mode,
minimum value, maximum value and range. The total observations are 241. Average price of
the share has mean of 17.65 with a standard deviation of 3.10. It ranges from 13.5 to 23.7. The
weighted average price has a mean of 17.66. The standard deviation of weighted average price
is 3.15. It ranges from 13.52 to 23.96. Turnover, Trading volume and issued number of shares
has mean of 20,935,731, 1,197,856, and 782,719,099 Respectively. The standard deviation of
turnover, trading volume and issued number of shares are 69362830.83, 3891800.952 and
36219090.78 respectively.

Variables Obs Mean Var St. dev

Lowprc 241 17.41 9.48377 3.07
hiprc 241 17.99 10.3124 3.21
avgprc 241 17.65 9.659386 3.10
wtavgprc 241 17.66 9.968902 3.15
clprc 241 17.63 9.58956 3.09
trdno 241 193.09 25590.15 159.96
trdvol 241 1197856 1.51461E+13 3891801
turnover 241 20935731 4.8112E+15 6.94
issdshare 241 782719099 1.31182E+15 3.62

Variables Obs Median Mode Min Max Range

Lowprc 241 15.90 15 13.5 23.7 10.20
hiprc 241 16.60 15.4 14 27 13
avgprc 241 16.18 15.08 13.76 23.95 10.19
wtavgprc 241 16.16 15.15 13.52 23.96 10.44
clprc 241 16.20 15.1 13.8 23.9 10.10
trdno 241 146 140 28 1251 1223
trdvol 241 324724 - 42946 3.52 35114553
turnover 241 5708507.70 - 655046 6.17 616545517.80
issdshare 241 812128506 812128506 7.38 8.12 73829864
 Correlation Matrix:
Table-02 shows the correlation matrix. In table-02, we can see that average price and weighted
average price are positively related to the trading no but negatively with trading volume. That
means, if the trading volume increases, the average price of the share and the weighted average
price of the share decreases. And if the trading no increases, average price and weighted
average price also increases.
Lowprc hiprc avgprc wtavgprc clprc trdno trdvol turnover issdshare
Lowprc 1.00
hiprc 0.98 1.00
avgprc 0.99 0.98 1.00
wtavgprc 0.99 0.99 0.99 1.00
clprc 0.99 0.98 0.99 0.99 1.00
trdno 0.11 0.17 0.13 0.15 0.13 1.00
trdvol -0.08 0.03 -0.04 -0.01 -0.03 0.42 1.00
turnover -0.04 0.09 -0.007 0.03 -0.001 0.45 0.98 1.00
issdshare -0.88 -0.88 -0.89 -0.88 -0.88 -0.05 0.09 0.05 1.00

Turnover is negatively related with average price but positively with the weighted average
price. Low price, high price and closing price are positively related with trading no. Only high
price is positively related with trading volume and turnover. Moreover, the relationship is very
weak in all the cases.
Regression:
Model-01:
AvgPrc = 𝛼 + 𝛽1 (𝐿𝑜𝑔𝑇𝑈𝑅𝑁) + 𝛽2 (𝐿𝑜𝑔𝑇𝑅𝐷𝑉𝑂𝐿) + 𝛽3 (𝐿𝑜𝑔𝐼𝑆𝑆𝐷𝑆𝐻𝑅) + 𝜀

Model-02
WTavgPrc = 𝛼 + 𝛽1 (𝐿𝑜𝑔𝑇𝑈𝑅𝑁) + 𝛽2 (𝐿𝑜𝑔𝑇𝑅𝐷𝑉𝑂𝐿) + 𝛽3 (𝐿𝑜𝑔𝐼𝑆𝑆𝐷𝑆𝐻𝑅) + 𝜀

Result of Model-01
AvgPrc Coeff Std. error T value P value
logTURN 39.25337 .7917525 49.58 0.000
logTRDVOL -39.32882 .8017965 -49.05 0.000
LogISSDSHR -7.17021 2.930447 -2.45 0.015

Average price of share has positive significant relationship with Turnover. Observed value
39.25 is greater than double of standard error (0.79*2 = 1.58). That means, if turnover is
increased by 100%, the average price will increase by 39.25%. Trading volume and issued
number of shares has negative significant relationship with average price of the share.

Result of Model-02
WtavgPrc Coeff Std. error T value P value
logTURN 42.18151 .3783585 111.49 0.000
logTRDVOL -42.20706 .381582 -110.16 0.000
LogISSDSHR 1.089112 1.400386 0.78 0.438

Weighted average price of share has positive significant relationship with Turnover. Observed
value 42.18 is greater than double of standard error (0.38*2 = 0.76). That means, if turnover is
increased by 100%, the average price will increase by 42.18%. Trading volume has significant
negative relationship with weighted average price and issued number of shares has significant
positive relationship with weighted average price.
Appendix
Descriptive Statistics

. summarize lowprc hiprc avgprc wtavgprc clsprc trdno trdvol turnover issuedshare

Variable Obs Mean Std. Dev. Min Max

lowprc 241 17.41369 3.079573 13.5 23.7

hiprc 241 17.99585 3.211292 14 27
avgprc 241 17.65992 3.107955 13.76 23.95
wtavgprc 241 17.66768 3.157357 13.52 23.96
clsprc 241 17.6332 3.096701 13.8 23.9

trdno 241 193.0954 159.9692 28 1251

trdvol 241 1197856 3891801 42946 3.52e+07
turnover 241 2.09e+07 6.94e+07 655046 6.17e+08
issuedshare 241 7.83e+08 3.62e+07 7.38e+08 8.12e+08

Correlation

. correlate lowprc hiprc avgprc wtavgprc clsprc trdno trdvol turnover issuedshare
(obs=241)

lowprc hiprc avgprc wtavgprc clsprc trdno trdvol turnover issued~e

lowprc 1.0000
hiprc 0.9801 1.0000
avgprc 0.9971 0.9854 1.0000
wtavgprc 0.9935 0.9931 0.9940 1.0000
clsprc 0.9965 0.9839 0.9992 0.9933 1.0000
trdno 0.1104 0.1706 0.1329 0.1530 0.1332 1.0000
trdvol -0.0888 0.0372 -0.0444 -0.0185 -0.0376 0.4276 1.0000
turnover -0.0458 0.0910 -0.0073 0.0350 -0.0010 0.4545 0.9851 1.0000
issuedshare -0.8875 -0.8852 -0.8920 -0.8868 -0.8895 -0.0500 0.0927 0.0553 1.0000

Model-1

. regress avgprc logturn logtrdvol logissdshr

Source SS df MS Number of obs = 241

F(3, 237) = 4377.36
Model 2277.15582 3 759.05194 Prob > F = 0.0000
Residual 41.0967976 237 .173404209 R-squared = 0.9823
Adj R-squared = 0.9820
Total 2318.25262 240 9.65938591 Root MSE = .41642

avgprc Coef. Std. Err. t P>|t| [95% Conf. Interval]

logturn 39.25337 .7917525 49.58 0.000 37.6936 40.81314

logtrdvol -39.32882 .8017965 -49.05 0.000 -40.90838 -37.74926
logissdshr -7.17021 2.930447 -2.45 0.015 -12.94326 -1.397159
_cons 33.14925 26.89748 1.23 0.219 -19.83943 86.13793
Model-02

. regress wtavgprc logturn logtrdvol logissdshr

Source SS df MS Number of obs = 241

F(3, 237) = 20060.54
Model 2383.15148 3 794.383828 Prob > F = 0.0000
Residual 9.38503785 237 .039599316 R-squared = 0.9961
Adj R-squared = 0.9960
Total 2392.53652 240 9.96890217 Root MSE = .199

wtavgprc Coef. Std. Err. t P>|t| [95% Conf. Interval]

logturn 42.18151 .3783585 111.49 0.000 41.43614 42.92689

logtrdvol -42.20706 .3831582 -110.16 0.000 -42.96189 -41.45223
logissdshr 1.089112 1.400386 0.78 0.438 -1.669682 3.847907
_cons -44.20469 12.85362 -3.44 0.001 -69.52664 -18.88274