Assignment 1 (Java Exercise: Data Mining)

CSCI 330 Database Systems
Assignment 1 (Java Exercise: Data Mining)
Total Point: 20 (5% of course grade)
Goals of the Assignment:
The purpose of this assignment is to:
1. understand how to process data in a regular text file using Java (this is a simple
example of data mining) and
2. make sure that you did not forget how to use Java 
Description of Input File and Problem Statement
The name of the input file is StockmarketInput.txt, which is available in the Assignment
section of your Canvas. This input file contains stock information for the last 25 years
(1990-2015) for the following seven big technology companies:
1. Apple (AAPL)
2. Facebook (FB)
3. Google (GOOG)
4. International Business Machine (IBM)
5. Intel Corporation (INTC)
6. Microsoft (MSFT)
7. Yahoo (YHOO)
This data is publicly available. The data is sorted by ticker symbol and date.
Each line of the StockmarketInput.txt file contains the data for a particular stock (ticker
symbol) for one day. The values are separated by a tab('\t').
Here is an example from the data for Microsoft (ticker symbol MSFT):
MSFT 8/18/2004 26.93 27.5 26.89 27.46 58844000 19.46
MSFT 8/17/2004 27.22 27.38 26.98 27.05 56879700 19.17
MSFT 8/16/2004 27.03 27.2 26.96 27.09 54347200 19.19
MSFT 8/13/2004 27.01 27.25 26.98 27.02 43333200 19.14
MSFT 8/12/2004 27.23 27.31 26.86 26.88 50279700 19.05
MSFT 8/11/2004 27.39 27.51 27.2 27.41 53097300 19.42
There are eight fields in each line. A description of each value of the first line (yellow
marked) is given below. All other lines of this example, as well as the entire
StockmarketInput.txt, will have similar meanings.
1. ticker symbol (MSFT),
2. date (8/18/2004),
3. opening price (26.93),
4. high price (27.50),
5. low price (26.89),
6. closing price (27.46),
7. volume or number of shares traded on that day (58844000 shares), and
8. adjusted closing price (19.46).
The opening and closing prices are the prices of the first and last trade, respectively, on the
given date. The high and low prices are the highest and lowest prices of any trade during
the day. The adjusted price includes corrections to the price to make comparisons across
days easier.
What to do
1. For each company, identify the crazy days in terms of stock price fluctuation. Here is
how to calculate the crazy days.
Suppose at Date D, the high price of the share of company X is Hx, and Low price is Lx. Then D
will be called crazy day if
(Hx-Lx)/Hx >= 15%
Let's consider the example below (yellow marked), which is taken from
StockmarketInput.txt.
YHOO 4/5/2000 162 169.88 158.5 165.56 27371800 82.78
YHOO 4/4/2000 165 171 132.75 167.38 42528400 83.69
YHOO 4/3/2000 168.75 173 159.38 160.13 19322800 80.06
Notice that, for 4/4/200, the high price of the share for Yahoo was $171, and the low price
was $132.75. The fluctuation of the stock price is (171-132.75)/171=22.37%, which is
more than 15%. Hence, 4/4/2000 is considered as a crazy day for Yahoo.
For this assignment, identity all crazy days for each company. Also, identify the craziest
day for that particular company, i.e., on which day of the entire history of the stock price,
the stock price fluctuated most.
2. Stock split:
Occasionally, a stock may split by some ratio, say 2-for-1. This means that every old share is
replaced by some number of new shares, in these case two. Each new share is worth some
fraction of the value of the old share. In this case, each is worth half the old value. Thus, the
value of each person's holding will remain unchanged.
We recognize such a stock split in the data when the closing value of day "x" is twice the
opening value on the day "x + 1", the next trading day. There is a complication at this point
because the price of the first trade of the new day does not have to be the same as the price
of the last trade of the prior day. The new opening price does not have to be exactly half of
the previous day's closing price.
Let's consider the example below (yellow marked), which is taken from
StockmarketInput.txt.
AAPL 3/1/2005 44.99 45.11 44.16 44.5 117047000 5.94
AAPL 2/28/2005 44.68 45.14 43.96 44.86 162902600 5.99
AAPL 2/25/2005 89.62 89.91 88.19 88.99 228877600 5.94
AAPL 2/24/2005 88.48 89.31 87.73 88.93 379757000 5.94
Notice that the closing price on 2/25/2005 was $88.99, and the opening price on
2/28/2005 was $44.68, giving a ratio of 88.99/44.68 = 1.991, which is slightly lower than 2.
Nevertheless, AAPL stock experienced a 2:1 stock split on 1997.04.02, and the small
variation is due to the initial trading activity on 2/28/2005as described above.
To accommodate such variations, we use the following definition, where Cx is the closing
price on day x and Ox+1 is the opening price on the next trading day x + 1.
Definitions:
 A 2:1 stock split occurs if | Cx / Ox+1 – 2.0| < 0.20
 A 3:1 stock split occurs if | Cx / Ox+1 – 3.0| < 0.30
 A 3:2 stock split occurs if | Cx / Ox+1 – 1.5| < 0.15
Reminder: |x| represents the absolute value of the number x.
For this assignment, you have to detect all splits of ratios 2:1, 3:1, and 3:2 using the
above formulas.
Note that "next day" when computing the closing/opening ratio is the next trading day,
which may not be the next day on the calendar due to weekends, holidays, etc. For this
assignment, adjacent lines in StockmarketInput.txt represent adjacent trading days.
Output
Your java program should read StockmarketInput.txt and output all splits, as defined
above, to System.out. The output file named StockmarketOutput.txt is available on canvas.
You have to follow the same format, as shown in the output file.
Note that the split is attributed to the day with the higher closing price. The two prices
are the closing price for the day of the split and the opening price for the next trading day.
StockmarketInput.txt is ordered in descending chronological order, which means that the
data for tomorrow comes before the data for today.
Good Design and Style
Although bad design and style will not hurt the performance of your program, it is of
utmost importance, especially when you will work in the real world with other
professionals, to follow good design and style for coding. It will be helpful not only for your
colleagues to understand your code better but also for you as well when you will revisit
your code later.
Here are some guidelines for good design and style:
 The program is logically organized so that a reader can quickly and easily
understand the program structure.
 Functions and variables have meaningful names.
 The program has a proper indentation.
 The program follows an object-oriented approach.
Point Distribution
Grading Criteria Points
The program gives the correct output 14
The program has good design and style 2
The write up is complete (YourLastName-Assignment1.pdf) 2
The output format is correct 1
The filename format is correct 1
Submission Instructions
 You have to submit the following on Canvas.
1. Java source code.
▪ The file name containing the main method should be
YourLastNameAssignment1.java.
▪ If you have more than one java files:
• Please keep all java files in a single folder.
• Zip the folder and name it YourLastName-Assignment1.zip.
2. A pdf file (Filename format: YourLastName-Assignment1.pdf) with the following
write up (If you have zip file for your java source code in the previous step,
please DON'T include PDF file in your zip file):
▪ Your full name
▪ Does your program compile correctly? Yes/No
▪ Does your program run correctly? Yes/No
▪ An acknowledgment and discussion of any parts of the program that are not
working. Failure to disclose obvious problems will result in additional penalties.
▪ An acknowledgment and discussion of any parts of the program that appear to
be inefficient (in either time or space complexity).
▪ How many hours did you spend on completing this assignment?
▪ Your expected score (please fill out the following table)
Grading Criteria Points Possible Your Expected Score
The program gives the correct output 14
The program has good design and style 2
The write up is complete (YourLastNameAssignment1.pdf)
2
The output format is correct 1
The filename format is correct 1
 Upload the following two files on canvas
1. YourLastNameAssignment1.java or YourLastName-Assignment1.zip
2. YourLastName-Assignment1.pdf