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).DateDJIAS&P 5006-Jan12360127813-Jan12422128920-Jan12740131527-Jan1266013163-Feb12862134310-Feb12801134517-Feb12960136224-Feb1298313662-Mar1297813709-Mar12922137116-Mar13233140223-Mar13081139730-Mar1321214085-Apr13050139513-Apr128601370 Use the data to develop an estimated regression equation showing how DJIA is related to S&P 500. Let x represent the S&P 500 indexes. Estimate predicted DJIA for 20-Apr using the regression model. Date DJIA S&P 50020-Apr129121365Group of answer choices1311612965129341267012517

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Answered: The Dow Jones Industrial Average (DJIA)…

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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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 500
6-Jan	12360	1278
13-Jan	12422	1289
20-Jan	12740	1315
27-Jan	12660	1316
3-Feb	12862	1343
10-Feb	12801	1345
17-Feb	12960	1362
24-Feb	12983	1366
2-Mar	12978	1370
9-Mar	12922	1371
16-Mar	13233	1402
23-Mar	13081	1397
30-Mar	13212	1408
5-Apr	13050	1395
13-Apr	12860	1370

Use the data to develop an estimated regression equation showing how DJIA is related to S&P 500.
Let x represent the S&P 500 indexes. Estimate predicted DJIA for 20-Apr using the regression model.