Question: It is often thought that changes in index stock prices are good predictors of changes in an individual company's stock prices. The analyst for


It is often thought that changes in index stock prices are good

It is often thought that changes in index stock prices are good predictors of changes in an individual company's stock prices. The analyst for a computer company charts the percent change in his company's stock prices (CO) and also records the percent change in the Standard and Poor's index (SP) for a sample of days. Find the equation that expresses the company's changes in stock prices as a linear function of the S&P index change. (10 pts) Obs# SP CO 1 -0.6 -6.4 2 2.2 -3.8 3 3.4 3.81 4 2.9 10 5 -3.6 -15.2 6 -0.6 24.4 7 -5.9 -19.6 8 -7.4 -17.6 9 5.7 3 10 1.1 23.4 11 5 13.4 12 5.7 9.8 13 7.9 14.6 14 8.2 22 15 1.4 2 16 -1.3 -4.6

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