Bundle: Statistics for Business & Economics, Loose-Leaf Version, 13th + MindTap Business Statistics with XLSTAT, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337148092
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Textbook Question
Chapter 16.6, Problem 27E
The following data show the daily closing prices (in dollars per share) for a stock.
| Date | Price ($) |
| Nov. 3 | 82.87 |
| Nov. 4 | 83.00 |
| Nov. 7 | 83.61 |
| Nov. 8 | 83.15 |
| Nov. 9 | 82.84 |
| Nov. 10 | 83.99 |
| Nov. 11 | 84.55 |
| Nov. 14 | 84.36 |
| Nov. 15 | 85.53 |
| Nov. 16 | 86.54 |
| Nov. 17 | 86.89 |
| Nov. 18 | 87.77 |
| Nov. 21 | 87.29 |
| Nov. 22 | 87.99 |
| Nov. 23 | 88.80 |
| Nov. 25 | 88.80 |
| Nov. 28 | 89.11 |
| Nov. 29 | 89.10 |
| Nov. 30 | 88.90 |
| Dec. 1 | 89.21 |
- a. Define the independent variable Period, where Period = 1 corresponds to the data for November 3, Period = 2 corresponds to the data for November 4, and so on. Develop the estimated regression equation that can be used to predict the closing price given the value of Period.
- b. At the .05 level of significance, test for any positive autocorrelation in the data.
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The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list for 2021, based on their performance the preceding year.
Symbol
Company
Price ($) as of 12/31/2020
Yield as of 12/31/2020
CVX
Chevron
84.45
6.11%
IBM
IBM
125.88
5.18%
DOW
Dow
55.50
5.05%
WBA
Walgreens
39.88
4.69%
VZ
Verizon
58.75
4.27%
MMM
3M
174.79
3.36%
CSCO
Cisco
44.39
3.24%
MRK
Merck
81.80
3.18%
AMGN
Amgen
229.92
3.06%
KO
Coca-Cola
54.84
2.99%
You decide to make a small portfolio consisting of a collection of 4 of the top 10 Dogs of the Dow.
(a)
How many portfolios are possible?
portfolios
(b)
How many of these portfolios contain DOW but not MMM?
portfolios
(c)
How many of these portfolios contain at most one stock priced above $100?
portfolios
Chapter 16 Solutions
Bundle: Statistics for Business & Economics, Loose-Leaf Version, 13th + MindTap Business Statistics with XLSTAT, 1 term (6 months) Printed Access Card
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