Dataset and Data Summary Report

Chuanrui Hua, Hong Duong, Muhammad Khan

JR Shaw School of Business, Northern Alberta Institute of Technology

STAT 3301 (O01): Econometrics

Jim Higginson

March 10, 2024

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 Table of Contents

Data Collection Description............................................................................................................2

Data Summary................................................................................................................................3

Data Validation and Cleaning..........................................................................................................4

Cleaning Methodology................................................................................................................4

Validation Process.......................................................................................................................4

References......................................................................................................................................4

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 Data Collection Description

The data for our econometrics research goes into Apple’s quarterly stock price and

revenue. We chose Yahoo Finance as the source for Apple's stock price data due to its reputation

and reliable platform for accessing historical stock price information. Yahoo Finance retrieves

this data from various stock exchanges and financial markets globally, ensuring comprehensive

coverage. This choice is relevant to our research topic as we aim to analyze the relationship

between Apple’s stock performance and revenue. For collecting revenue data, we relied on

Apple’s financial reports. These reports are considered the most direct and reliable source for

Apple's revenue figures. Apple's financial reports are publicly available through their investor

relations website and regulatory filings, providing detailed insights into the company's financial

performance. By utilizing both Yahoo Finance for stock price data and Apple's financial reports

for revenue data, we ensure the accuracy and comprehensiveness necessary for conducting

rigorous econometric analysis.

Data Summary

In our dataset, we calculated the mean, standard deviation, minimum, and maximum

values, comparing them across the dependent variable, revenue, and our independent variables,

including revenue, stockmean, change, and growth. Stockmean represents the aggregated three-

month stock price data that we’ve compiled, in the charts below. We have included our

regression chart below to get a deeper understanding of the relationship between the dependent

and independent variables. Within our dataset, there are 68 recorded observations, each

associated with four distinct variables, all characterized as time series variables. A time series

variable involves tracking observations on a single variable or multiple variables over time, and

in our dataset, these observations are presented quarterly. As per Hayes (2022), it is a common

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practice to monitor the price movement of a security across time. This approach proves valuable

in observing the fluctuations of a specific asset, security, or economic variable over a period.

Using the first regression results, we conducted a regression analysis with stockmean as

the independent variable and revenue as the dependent variable. The resulting regression

equation is represented as:

Revenue = 28.988 + 0.468 * stockmean

Examining the F-value and Prob > F in the output leads to the conclusion that the

independent variables effectively predict the dependent variable. This inference is drawn from

the comparison of the p-value to the alpha value, set at 0.05, with the p-value indeed being

smaller.
Variable Obs Mean Std. dev. Min Max

change 68 5.368485 7.094558 -7.45 31.27

growth 68 .2108044 .2455549 -.1461 .9012
stockmean 68 48.76775 55.35788 2.653182 184.525
revenue 68 51.81529 31.33112 5.26 123.95

. regress revenue stockmean

Source SS df MS Number of obs = 68

F(1, 66) = 142.84
Model 44984.443 1 44984.443 Prob > F = 0.0000
Residual 20785.3598 66 314.929694 R-squared = 0.6840
Adj R-squared = 0.6792
Total 65769.8028 67 981.638848 Root MSE = 17.746

revenue Coefficient Std. err. t P>|t| [95% conf. interval]

stockmean .4680738 .0391643 11.95 0.000 .3898798 .5462678

_cons 28.98839 2.877367 10.07 0.000 23.24354 34.73324

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 With our observation of the regression output below, the estimated regression is

Stockmean = -37.804 + 1.644 * revenue – 1.226 * change + 37.768 * growth

When comparing F and Prob > F values the independent variables, change and growth, do not

predict the dependent variable, stockmean.

. regress stockmean revenue change growth

Source SS df MS Number of obs = 68

F(3, 64) = 48.53
Model 142621.848 3 47540.6161 Prob > F = 0.0000
Residual 62699.3026 64 979.676602 R-squared = 0.6946
Adj R-squared = 0.6803
Total 205321.151 67 3064.49479 Root MSE = 31.3

stockmean Coefficient Std. err. t P>|t| [95% conf. interval]

revenue 1.644247 .1748396 9.40 0.000 1.294964 1.993529

change -1.226851 .8594398 -1.43 0.158 -2.943779 .4900773
growth 37.76893 27.32476 1.38 0.172 -16.81855 92.35641
_cons -37.80489 11.45936 -3.30 0.002 -60.69759 -14.9122

Two-sample t test with unequal variances

Variable Obs Mean Std. err. Std. dev. [95% conf. interval]

revenue 68 51.81529 3.799456 31.33112 44.23155 59.39904

stockm~n 68 48.76775 6.713129 55.35788 35.36829 62.16721

Combined 136 50.29152 3.844802 44.83771 42.68769 57.89536

diff 3.047543 7.713752 -12.24584 18.34092

diff = mean(revenue) - mean(stockmean) t = 0.3951

H0: diff = 0 Satterthwaite's degrees of freedom = 105.929

Ha: diff < 0 Ha: diff != 0 Ha: diff > 0

Pr(T < t) = 0.6532 Pr(|T| > |t|) = 0.6936 Pr(T > t) = 0.3468

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 Revenue
150

100

50

0
0 50 100 150 200
Stock Mean

Data Validation and Cleaning

Cleaning Methodology

Step 1: Download Apple Monthly Stock Price from Yahoo Finance and save it as an

Excel file named "Apple Stock Price".

Step 2: Add variables "year", "quarter", and "fiscal year" to the Excel file.

Add a variable in column H named year with if function (if the month of date >10,

year+1, year); Add a variable in column I named quarter with if function (if the month of date

<4, Q2, if the month of date <7, Q3, if the month of date <10, Q4, Q1); Add a variable in column

J named fiscal year with and function (Combine fiscal year and quarter).

Step 3: Input the Excel file "Apple Stock Price" into Stata.

import excel "C:\Users\Rache\OneDrive - NAIT\STAT3301 Econometrics\Group Case

Study\Apple Stock Price Monthly.xlsx", sheet("AAPL monthly") firstrow clear

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 Step 4: Calculate means from the variable "fiscalyear".

Typing the command window:

tabstat AdjClose, by(fiscalyear) statistics(mean median min max)

Step 5: Output table for fiscal quarter mean value as "apple quarterly stock price".

Step 6: Download Apple Quarterly Revenue data with Excel file named "Apple Total

Revenue".

Step 7: Change Column A name from "quarter end" to "fiscal year".

Step 8: Use Text to Columns function to split Column B (revenue) and C (change) into

numbers without "billion" behind.

Step 9: Combine the mean stock price data into Excel "Apple Total Revenue" by adding a

new column "Stock Mean".

Step 10: Input the Excel file "Apple Total Revenue" as a dataset into Stata.

Validation Process

Step 1: Summarize for variable "revenue".

Typing the command window:

tabstat revenue, by(fiscalyear) statistics(mean median min max sd)

Step 2: Perform linear regression with "revenue" as the dependent variable and

"stockmean" as the independent variable.

Statistics > Linear models and related > Linear regression

Under Model tab

Dependent variable = revenue

Independent variables = stockmean

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 Step 3: Perform linear regression with "stockmean" as the dependent variable and

"revenue change growth" as independent variables.

Statistics > Linear models and related > Linear regression

Under Model tab

Dependent variable = stockmean

Independent variables = revenue change growth

Step 4: Generate a twoway graph.

Typing the command window:

regress stockmean revenue change growth

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 References

Hayes, A. (June, 2022). What is a time series and how is it used to analyze data? Investopedia.

https://www.investopedia.com/terms/t/timeseries.asp#:~:text=A%20time%20series%20can

%20be,of%20a%20security%20over%20time.

Stock Analysis. (n.d.). Apple Inc. (AAPL) Stock Price. https://stockanalysis.com/stocks/aapl/revenue/

Yahoo Finance. (n.d.). Apple Inc. (AAPL) Stock Historical Prices & Data.

https://finance.yahoo.com/quote/AAPL/history/