The Dow Jones stock index measures the performance of the stocks of Americas largest companies (finance.yahoo.com). A
Question:
The Dow Jones stock index measures the performance of the stocks of America’s largest companies (finance.yahoo.com). A regression of the Dow prices on years 1972–2015 looks like this:
a) What is the correlation between Dow Index and Year?
b) Write the regression equation.
c) Explain in this context what the equation says.
d) Here’s a scatterplot of the residuals. Comment on the appropriateness of the model.
Transcribed Image Text:
Dependent variable is Dow Index R-squared 88.4% s = 1790 = = Variable Intercept Year since 1970 Coefficient -2891.43 379.917
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a Since the slope of the regression equation is positive we k...View the full answer
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Related Book For
Intro Stats
ISBN: 9780134668420
5th Edition
Authors: Richard D De Veaux, Paul F Velleman, David E Bock, Nick Horton
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