Question: (c) Develop regression model to forecast DJIA using Share Price. Predict value of DJIA for year 21 using the value of Share Price predicted in

(c) Develop regression model to forecast DJIA using Share Price. Predict value of DJIA for year 21 using the value of Share Price predicted in in (a).

(d) Which DJIA forecast, regression (c) or liear trend (b), is more accurate. Compute appropriate measures (MAD, MAPD, cumulative error, and mean error)

The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJA) for a 20-year period: (a) Develop a linear trend model to forecast Share Price for year 21. (b) Develop linear trend model for DJIA to predict its value for year 21 . (c) Develop regression model to forecast DJIA using Share Price. Predict value of DJIA for year 21 using the value of Share Price predicted in in (a). (d) Which DJIA forecast, regression (c) or liear trend (b), is more accurate. Compute appropriate measures (MAD, MAPD, cumulative error, and mean error)

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