MULTIVARIATE ANALYSIS: A VERITABLE TOOL FOR THE ASSESSMENT OF MARKET PRICES OF ORDINARY SHARES

Itiveh Francis Enahoro&EriyevaAgwuGodspower

Department of Mathematics and Statistics

Delta State Polytechnic, Ozoro

Email: fenoitiveh4@gmail.com

ABSTRACT

This research was carried out to investigate the significant difference between the mean share prices of the two banks (UBA and FCMB) and to determine which of the two banks is more likely to attract investors. The target population includes the fifteen (15) banks quoted in the Guardian Newspaper market report of the Nigeria Stock Exchange of shares publications from (January 2018 – June 2018). Samples of two banks were selected by the method of simple random sampling without replacement. The data was collected on weekly basis for Twenty-four (24) consecutive weeks from the weekly publication of the Guardian Newspaper market report of the Nigeria Stock Exchange. The closing stock for each week of the two selected bank was taken and recorded for the research. The null hypothesis Ho: there is no significant difference between the mean shares prices of both banks, was tested as against the alternative hypothesis. H₁: there is a significant difference between the mean shares prices of both banks. Hoteling’s T-squared test statistic was employed in the analysis/hypothesis testing. The findings indicated a significant difference between the mean share prices of FCMB and UBA. F-calculated 42.48 and F_{tab 2.22}(0.05) = 3.44. Ho was rejected while H₁ was accepted. Also the 95% confidence interval calculated show that the true mean of UBA is higher than that of FCMB. Thus, UBA shares tend to yield more profit.

Keywords: Stock, shares, analysis, profit, variance, variables, accept