The following data show the daily closing prices (in dollars per share) for a stock. Date Nov. 3 Nov. 4 Nov. 7 Nov. 8 Nov. 9 Nov. 10 Nov. 11 Nov. 14 Nov. 15 Nov. 16 Nov. 17 Nov. 18 Nov. 21 Nov. 22 Nov. 23 Nov. 25 Nov. 28 89.60 Nov. 29 88.89 Nov. 30 88.07 Dec. 1 88.61 a. Define the independent variable Period, where Period = 1 corresponds to the data for November 3, Period 2 corresponds to the data for November 4, and so on. Develop the estimated regression equation that can be used to predict the closing price given the value of Period (to 3 decimals). Price = Period b. At the 0.05 level of significance, test for any positive autocorrelation in the data. What is the value of the Durbin-Watson statistic (to 3 decimals)? Price ($) 82.92 83.67 82.36 82.42 82.79 83.63 84.21 84.53 85.42 86.21 86.70 87.65 87.37 87.91 88.41 88.25 +

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Section4.6: Rational Functions
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16.6 Practice
The following data show the daily closing prices (in dollars per share) for a stock.
Date
Nov. 3
82.92
Nov. 4
83.67
Nov.
82.36
Nov.
82.42
Nov.
82.79
Nov. 10
83.63
Nov. 11
84.21
Nov. 14
84.53
Nov. 15
85.42
Nov. 16
86.21
Nov. 17
86.70
Nov. 18
87.65
Nov. 21
87.37
Nov. 22
87.91
Nov. 23
88.41
Nov. 25
88.25
Nov. 28
89.60
Nov. 29
88.89
88.07
Nov. 30
Dec. 1
88.61
a. Define the independent variable Period, where Period 1 corresponds to the data for November 3, Period 2 corresponds to the data for November 4, and so on. Develop the estimated
regression equation that can be used to predict the closing price given the value of Period (to 3 decimals).
Price =
Period
b. At the 0.05 level of significance, test for any positive autocorrelation in the data.
What is the value of the Durbin-Watson statistic (to 3 decimals)?
Price ($)
+
X
Transcribed Image Text:16.6 Practice The following data show the daily closing prices (in dollars per share) for a stock. Date Nov. 3 82.92 Nov. 4 83.67 Nov. 82.36 Nov. 82.42 Nov. 82.79 Nov. 10 83.63 Nov. 11 84.21 Nov. 14 84.53 Nov. 15 85.42 Nov. 16 86.21 Nov. 17 86.70 Nov. 18 87.65 Nov. 21 87.37 Nov. 22 87.91 Nov. 23 88.41 Nov. 25 88.25 Nov. 28 89.60 Nov. 29 88.89 88.07 Nov. 30 Dec. 1 88.61 a. Define the independent variable Period, where Period 1 corresponds to the data for November 3, Period 2 corresponds to the data for November 4, and so on. Develop the estimated regression equation that can be used to predict the closing price given the value of Period (to 3 decimals). Price = Period b. At the 0.05 level of significance, test for any positive autocorrelation in the data. What is the value of the Durbin-Watson statistic (to 3 decimals)? Price ($) + X
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