The Dailydow.xlsx file gives daily values for the Dow Jones Industrial Average Index during the period 19962010.

Question:

The Dailydow.xlsx file gives daily values for the Dow Jones Industrial Average Index during the period 1996–2010. What is the R-squared value when you predict tomorrow’s Dow Jones from today’s values? Does this high R-squared value mean that the market is easy to predict?

DateDow
1/2/19965177.45
1/3/19965194.07
1/4/19965173.84
1/5/19965181.43
1/8/19965197.7
1/9/19965130.13
1/10/19965032.94
1/11/19965065.1
1/12/19965061.12
1/15/19965043.78
1/16/19965088.22
1/17/19965066.9
1/18/19965124.35
1/19/19965184.68
1/22/19965219.36
1/23/19965192.27
1/24/19965242.84
1/25/19965216.83
1/26/19965271.75
1/29/19965304.98
1/30/19965381.21
1/31/19965395.3
2/1/19965405.06
2/2/19965373.99
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: