50. The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 Index (S&P 500) are both used to measure the performance of the stock market. The DJIA is based on the price of stocks for 30 large companies; the S&P 500 is based on the price of stocks for 500 companies. If both the DJIA and S&P 500 measure the performance of the stock market, how are they correlated? The following data show the daily percent increase or daily percent decrease in the DJIA and S&P 500 for a sample of nine days over a three-month period (The Wall Street Journal, January 15 to March 10, 2006). -.25 -.24 -.33 DJIA .20 .82 -99 .04 1.01 .30 .55 S&P 500 .24 .19 -.91 .08 .87 .36 .83 -.16 a. Show a scatter diagram. b. Compute the sample correlation coefficient for these data. c. Discuss the association between the DJIA and S&P 500. Do you need to check both before having a general idea about the daily stock market performance?

50. The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 Index (S&P 500) are both used to measure the performance of the stock market. The DJIA is based on the price of stocks for 30 large companies; the S&P 500 is based on the price of stocks for 500 companies. If both the DJIA and S&P 500 measure the performance of the stock market, how are they correlated? The following data show the daily percent increase or daily percent decrease in the DJIA and S&P 500 for a sample of nine days over a three-month period (The Wall Street Journal, January 15 to March 10, 2006). -.25 -.24 -.33 DJIA .20 .82 -99 .04 1.01 .30 .55 S&P 500 .24 .19 -.91 .08 .87 .36 .83 -.16 a. Show a scatter diagram. b. Compute the sample correlation coefficient for these data. c. Discuss the association between the DJIA and S&P 500. Do you need to check both before having a general idea about the daily stock market performance?

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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