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Being a multinational company, Microsoft designs, develops, and markets computer programs, services, hardware, and even solutions across the globe, and seemingly in every region this company is broadening its product portfolio (Yahoo Finance, 2019). MBA FPX 5008 Assessment 3 Microsoft Azure is a cloud-based data storage and analysis; Office 365 Commercial Products and Services can be accessed with the help of the cloud; Microsoft Windows, 35% of it, is cloud-based. As of March 2019, it holds 5% of the operating system market share (StatCounter, 2019) which includes among others, Windows operating systems (Yahoo Finance, 2019).
Thus, the manufacturing of mobile devices, tablets, PCs, and gaming gear (Xbox) NT increased. This particular change though did not prove successful as Microsoft’s strategy to acquire Nokia’s Devices and Services division did not succeed (Belanger, 2018).
MBA FPX 5008 Assessment 3 Corporate Technology Services
Other segments such as corporate technology services and cloud computing this company shifted focus in 2014 after Satya Nadella replaced Ballmer to lead the company to profitable growth (Belanger, 2018). Recently, Microsoft has generated significant revenues from the acquisition of LinkedIn, expounding on 365 Office and emerging Azure (Belanger, 2018). Of the two, Microsoft has an average growth rate of one. 5 % increase in the same period to a rate of 4% over the last five years, while the management of the company is planning to achieve a rate of 7%. According to Simply Wall ST (2019), the companies’ earnings increased by 5% in the year 2020. The company currently has a sale of roughly 32 million dollars, that is an amount that has been quite steady over the years. 5 billion USD of turnover and 8 USD of profit. 6%, and therefore the company is in a state of incredible optimality for the future, according to Microsoft one billion US dollars, following the 76% increase in Azure sales as well as 39% increase in Surface tablet and laptop unit sales (Weise, 2019).
Graphical Representations of Data Interpreting the Scatterplots
Linearity characterizes the scatterplot. As can be seen in the figure, in 2018, the trend of stock prices is relatively close to being in a positively moving linear relationship with time. Looking at the prices for the year 2018, it is worth noticing that they all increased and among them, the highest increase is of the stocks of Microsoft. While there has been no transition in the value associated with the highest stock prices today to the past and these prices have not increased in any way, the relation is reasonably good.
Lowest Stock Prices
The trends in Microsoft’s lowest stock prices from February 2018 to February 2019 are depicted below in Fig 1. 2. Moreover, when analyzing the legend of the graph the dependent variable equals the lowest stock prices in US dollars and the independent variable equals time in days. What it virtually expresses is that each of the low-price stocks tends to rise with time albeit slightly. MBA FPX 5008 Assessment 3 fluctuations in the value of the lowest stock prices are as follows: From March to October the value of the lowest stock prices increased while from October to December the prices slightly fluctuated before rising again. The data shown in the scatterplot are fairly well aligned as a straight positive line of a small slope, suggesting the low volatility of the lowest stock prices. This is also evident from the scatterplot we have just created, where there are no extreme values that suggest that Microsoft’s market shares have swung up or down in recent years.
Interpreting the Histograms
Daily adjusted closing stock prices that lie within specific even interval continuous data set-referenced categories per given occurrence (Illustration 2. 1). The axis of x shows the values of the adjusted closing stock prices and the axis of y shows the number of price values that falls in each range of values. You will also note that most of the data points lies on the higher end of the daily adjusted closing stock prices making the histogram left-skewed. This proves that, on average, Microsoft’s adjusted closing stock prices are fairly erratic; the median is higher than the mean, and the histogram leans to the left.
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Demonstrates how often volume was bought and sold on Microsoft every day with the help of continuous data ranges. MBA FPX 5008 Assessment 3 kind of chart measures stock volume in the vertical axis and the rank of frequency of volume in the horizontal axis. From the histogram, it is clear that there is a right–to–left skew, which indicates that most of the 40-day average volume is clustered in the lower end. As the mean is greater than the median; the circumstances point to positive skewness in the shape of the histogram. AI: Forecasting Microsoft’s daily stock volume: As can be seen from the histogram, it is quite challenging to predict the stock volume as the data displayed is skewed to the right with the majority of the data points being in the lower region of stock volume.
MBA FPX 5008 Assessment 3 Descriptive Statistics
Consequently, Microsoft’s worth on the web has hit 101 as a result of stock alteration. 618 USD which is relatively good as averages for data sets. This fact is in line with the yearly growth in sales and Profit achieved by the company. The median is also a measure of central tendency that refers to the middle value when all the values in a data collection are arranged in ascending order whereas the mean on the other hand is the arithmetic average of all the values in a set of data. However, there are some on the lower side of the distribution, as can be seen by the median of Microsoft’s adjusted closing stock prices being at 103. Due to this, Microsoft has a test of the sensitivity of 249 USD which is above the mean this highlights on how volatile it is in terms of stock value. There seems to be a weakness in the data distribution of adjusted closing prices as evidenced by the nature of the mean and median.
SHL and XTL
When comparing the two results obtained for MBA FPX 5008 Assessment 3 SHL and XTL a clearer picture appears where SHL’s price per share of $2. 30 is much lower than the average stock price of $1. 01. 939 USD and the range being from 283 to 1554; the standard deviation of the adjusted closing stock prices is 6. That means the coefficient of variation for this stock is 6 and its value is 953 USD with a standard deviation of 179, 8 USD. 7%. You may learn about the fact that investing in a particular company can be dangerous if you look at its standard deviation which reflects the price fluctuations. The standard deviation gives a figure of a moderate amount of risk that is attached with Microsoft stock purchases.
The stocks in Microsoft can be regarded as quite liquid for the period starting from February 2018 up to February 2019 the daily average turnover in shares was 31210598 (Seth, 2018). Microsoft is a highly valued public limited company with a daily stock turnover which is evidence of huge number of prospective buyers since every share with a turnover of less than 10000 is regarded as a low turnover share (Seth, 2018). The median stock volume is slightly less than the mean which is 28,123,200. Mechanised outliers on the upper end of the data set indicate that there are big fluctuations in the company’s daily traded stock volume. Twelve thousand nine hundred and ninety-eight points, or 41 per cent responded ‘often’ or more frequently about the use of technology to improve client satisfaction in their organisation. The standard deviation is at 3% of the mean stock volume. Standard deviation of Microsoft’s shares are high which indicate that there is a clear odd one and two trading volume irregularity of the shares as indicated by 12,909,909. 8. This shows that the dataset is very volatile in nature and can change sharply within a short span of time.
Conclusion
From MBA FPX 5008 Assessment 3 statistical computations and the graphical analysis of the given history of Microsoft’s stock, management may be able to have some good clues as to some of the new products which could be introduced into the market as well as growth prospects. Here are a few major themes that leaders need to keep an eye on:Here are a few major themes that leaders need to keep an eye on. The influence of the enhanced ‘Social Identity Model of Alcohol Use’ idea is that a range of interrelated theoretical and methodological concepts can be utilised for a quick solution of different problems in alcohol misuse and trends connected with it. higher revenues recorded by Microsoft in the year 2018 than was recorded in the previous years. Based on the company’s quarterly results, or more so the total revenue it has generated during the financial quarter, which is $32.
In as much as this figure ($5 billion USD) impacted its market valuation at the beginning of 2019, the scatterplots above indicate that prices were more accurately valued at the beginning of 2019 as compared to 2018. By looking at the histograms below we can infer that while the median of the adjusted closing stock prices was close to the upper end of the distribution we were examining, the median of stock volume was close to the lower end of the distribution. This suggests that while there was a high demand for Microsoft shares some shareholders were reluctant to offload their stakes. It is for this reason that the pattern in Microsoft’s dividend payout over the time was in line with this tendency, and this may in part explain why the traded volume in Microsoft’s stock changed at a slower rate than its price (Weise, 2019).
References
Morah, C. (2018, March 2). Are stocks with large daily volume less volatile? Retrieved from https://investopedia.com/ask/answers/09/daily-volume-volatility.asp
Seth, S. (2018, January 10). The risks of trading low-volume stocks. Retrieved from https://www.investopedia.com/articles/active-trading/051415/risks-trading-lowvolume- stocks.asp
Simply Wall St. (2019). Microsoft Corporation (NASDAQ: MSFT): What does the future look like? Retrieved from https://simplywall.st/stocks/us/software/nasdaq- msft/microsoft/news/microsoft-corporation-nasdaqmsft-what-does-the-future-look-like/
StatCounter. (2019). Operating system market share worldwide. Retrieved from http://gs.statcounter.com/os-market-share
Weise, K. (2019, January 30). The New York Times. Retrieved from https://nytimes.com/2019/01/30/technology/microsoftearnings.html?rref=collection%2Ftimestopic%2FMicrosoft%20Corporation
Yahoo Finance. (2019). Microsoft Corporation (MSFT) [Data set]. Retrieved from https://finance.yahoo.com/quote/msft/profile/
