A Comparison of Parameters of Weibull Distribution on Nigeria Stock Prices

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, Guinness Nigeria 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; 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 does not follow a Weibull Distribution (P-value<0.05).