Question: Problem 1 The data on the SPSS file contain the stock prices of four companies, collected weekly for 53 consecutive weeks, ending May 22, 2016.

 Problem 1 The data on the SPSS file contain the stock
prices of four companies, collected weekly for 53 consecutive weeks, ending May

Problem 1 The data on the SPSS file contain the stock prices of four companies, collected weekly for 53 consecutive weeks, ending May 22, 2016. The variables are: Week - Closing date for stock prices. MSFT - Stock price of Microsoft Ford - Stock price of Ford Motor Company GM - Stock price General Motors IAL - Stock price of International Aluminum. A. Calculate the correlation coefficient for each pair of stocks using SPSS Correlations MSFT Ford GM IAL MSFT Pearson Correlation 1 -.072 -.392 .067 Sig. (2-tailed) .610 004 .634 N 53 53 53 53 Ford Pearson Correlation -.072 1 860 -.916 Sig. (2-tailed) 610 .000 .000 N 53 53 53 53 GM Pearson Correlation -.392 860 1 -.836 Sig. (2-tailed) 004 .000 000 N 53 53 53 53 IAL Pearson Correlation 067 -.916 -.836 1 Sig. (2-tailed) .634 .000 000 N 53 53 53 53 **. Correlation is significant at the 0.01 level (2-tailed). B. Interpret the meaning of r for each pair. If the r value is close to -1 or -1 it means the stock prices are related and based upon the sign will increase when increased or decrease when increased and vice versa. As the r value gets closer to zero it means there is no relationship meaning the stock price of one does not affect the stock price of another

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!