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

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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 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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Finding the Linear Regression Equation We can find the equation that expresses the companys stock pr... View the full answer