Afile 500 Date February 10 February 17 February 24 March 2 March 9 March 16 March 23 March 30 April 5 April 13 DJIA 12,801 12,950 12,983 12,978 12,922 13,233 13,081 13,212 13,060 12,850 Source: Barron's website, (http://www.barrons.com/data) S&P 1343 1362 1366 1370 1371 1404 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 used to predict the S&P 500 value in part (e) is beyond the range of the data used to develop the estimated

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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Question
Ch 14 #58
Leverage of Observation
h₁ =
1
n
Date
January 6
January 13
January 20
January 27
February 3
+
(x₁ - x)²
Σ(x − x)2
SUPPLEMENTARY EXERCISES
.................................
55. Does a high value of r² imply that two variables are causally related? Explain.
56. In your own words, explain the difference between an interval estimate of the mean
value of y for a given x and an interval estimate for an individual value of y for a given x.
0? If we reject B₁ = 0, does it imply a
57. What is the purpose of testing whether B₁
=
good fit?
58. Stock Market Performance. 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, of a previous year follow (Barron's website).
(14.33)
DJIA
12,360
12,422
12,720
12,660
12,862
S&P
1278
1289
1315
1316
1345
Transcribed Image Text:Leverage of Observation h₁ = 1 n Date January 6 January 13 January 20 January 27 February 3 + (x₁ - x)² Σ(x − x)2 SUPPLEMENTARY EXERCISES ................................. 55. Does a high value of r² imply that two variables are causally related? Explain. 56. In your own words, explain the difference between an interval estimate of the mean value of y for a given x and an interval estimate for an individual value of y for a given x. 0? If we reject B₁ = 0, does it imply a 57. What is the purpose of testing whether B₁ = good fit? 58. Stock Market Performance. 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, of a previous year follow (Barron's website). (14.33) DJIA 12,360 12,422 12,720 12,660 12,862 S&P 1278 1289 1315 1316 1345
TA file
P500
Supplementary Exercises
Date
February 10
February 17
February 24
March 2
March 9
March 16
March 23
March 30
April 5
April 13
DJIA
12,801
12,950
12,983
12,978
12,922
13,233
13,081
13,212
13,060
12,850
S&P
1343
1362
1366
1370
1371
1404
1397
1408
1398
1370
715
Source: Barron's website, (http://www.barrons.com/data)
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 used to predict the S&P
500 value in part (e) is beyond the range of the data used to develop the estimated
regression equation?
59. Home Size and Price. Is the number of square feet of living space a good predictor of a
The following data collected in April, 2015, show the square foot-
Transcribed Image Text:TA file P500 Supplementary Exercises Date February 10 February 17 February 24 March 2 March 9 March 16 March 23 March 30 April 5 April 13 DJIA 12,801 12,950 12,983 12,978 12,922 13,233 13,081 13,212 13,060 12,850 S&P 1343 1362 1366 1370 1371 1404 1397 1408 1398 1370 715 Source: Barron's website, (http://www.barrons.com/data) 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 used to predict the S&P 500 value in part (e) is beyond the range of the data used to develop the estimated regression equation? 59. Home Size and Price. Is the number of square feet of living space a good predictor of a The following data collected in April, 2015, show the square foot-
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