Homework Help is Here – Start Your Trial Now!
Math
Statistics
a. Develop a scatter diagram with DJIA as the independent variable. b. Develop the estimated regression equation. c. Test for a significant relationship. Use a = .05.

a. Develop a scatter diagram with DJIA as the independent variable. b. Develop the estimated regression equation. c. Test for a significant relationship. Use a = .05.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Topic Video
Question
100%
Please a hand written solution is needed not mini tab or excel, thanks.
58. The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the price movements of 30 large companies; the S&P 500 is an index composed of 500 stocks. Some say the S&P 500 is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the S&P 500 for 15 weeks, beginning with January 6, 2012, follow (Barron's website, April 17, 2012). Date DJIA S&P January 6 January 13 January 20 January 27 February 3 February 10 February 17 February 24 March 2 12,360 12,422 12,720 12,660 12,862 12,801 1278 1289 1315 1316 1345 DATA File 1343 12,950 12,983 1362 DJIAS&P500 1366 12,978 12,922 1370 March 9 March 16 1371 13,233 13,081 13,212 13,060 12,850 1404 March 23 March 30 April 5 April 13 1397 1408 1398 1370 a. Develop a scatter diagram with DJIA as the independent variable. b. Develop the estimated regression equation. c. Test for a significant relationship. Use a = .05. d. Did the estimated regression equation provide a good fit? Explain. e. Suppose that the closing price for the DJIA is 13,500. Predict the closing price for the S&P 500. f. Should we be concerned that the DJIA value of 13,500 usced to predict the S&P 500 value in part (e) is beyond the range of the data used to develop the estimated regres- sion equation?
Transcribed Image Text:58. The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the price movements of 30 large companies; the S&P 500 is an index composed of 500 stocks. Some say the S&P 500 is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the S&P 500 for 15 weeks, beginning with January 6, 2012, follow (Barron's website, April 17, 2012). Date DJIA S&P January 6 January 13 January 20 January 27 February 3 February 10 February 17 February 24 March 2 12,360 12,422 12,720 12,660 12,862 12,801 1278 1289 1315 1316 1345 DATA File 1343 12,950 12,983 1362 DJIAS&P500 1366 12,978 12,922 1370 March 9 March 16 1371 13,233 13,081 13,212 13,060 12,850 1404 March 23 March 30 April 5 April 13 1397 1408 1398 1370 a. Develop a scatter diagram with DJIA as the independent variable. b. Develop the estimated regression equation. c. Test for a significant relationship. Use a = .05. d. Did the estimated regression equation provide a good fit? Explain. e. Suppose that the closing price for the DJIA is 13,500. Predict the closing price for the S&P 500. f. Should we be concerned that the DJIA value of 13,500 usced to predict the S&P 500 value in part (e) is beyond the range of the data used to develop the estimated regres- sion equation?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Optimization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS