A Comparison of Parameters of Weibull Distribution on Nigeria Stock Prices

Chukwudi Anderson Ugomma

doi:10.52589/AJMSS-REDRKRST

A Comparison of Parameters of Weibull Distribution on Nigeria Stock Prices

African Journal of Mathematics and Statistics Studies

Vol. 7Issue 32024pp. 198–210Published 13 September 2024

DOI 10.52589/AJMSS-REDRKRST

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Abstract:

This paper compared 2-parameter and 3-parameter Weibull Distribution using monthly average stock price returns of five different bottling companies enlisted in the Nigerian Stock market comprising Nigerian Breweries PLC, Coca-Cola Bottling Company, Guiness Nigerian PLC, Seven Up Bottling Company and International Breweries from 2012 to 2016 obtained from www.market.ft.com/data/equities/tearsheet/historical . The parameters were obtained using the Method of Moments (MOM) and were compared by the means of minimum Mean Squared Error and the result shows that Coca-Cola bottling company stock price return performed better under 2-parameter Weibull Estimate while International Breweries was a choice under 3-Parameter Weibull Estimate. Also, the goodness –of-fit test was conducted using Kolmogorov-Smirnov Test and the result reviewed that the price of the stock returns do not follow a Weibull Distribution (P-value<0.05)

Keywords:Two-Parameter Weibull Distribution Three-Parameter Weibull Distribution Method of Moments Stock Prices.

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