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The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the price movements of 30 large companies; the S&P 500 is an index composed of 500 stocks. Some say the S&P 500 is a better measure of stock market performance because it is broader based. Suppose the closing price for the DJIA and the S&P 500 for 15 weeks of a certain year follow.

Date	DJIA	S&P 500
Week 1	12,370	1,279
Week 2	12,412	1,290
Week 3	12,730	1,316
Week 4	12,670	1,317
Week 5	12,852	1,344
Week 6	12,811	1,344
Week 7	12,940	1,361
Week 8	12,993	1,365
Week 9	12,988	1,371
Week 10	12,912	1,372
Week 11	13,223	1,405
Week 12	13,091	1,396
Week 13	13,202	1,409
Week 14	13,050	1,399
Week 15	12,860	1,371

(b)

Develop an estimated regression equation showing how S&P 500 is related to DJIA. What is the estimated regression model? (Round your numerical values to two decimal places.)

=

(c)

What is the 95% confidence interval for the regression parameter ₁? (Round your answers to three decimal places.)

to

Based on this interval, what conclusion can you make about the hypotheses that the regression parameter ₁ is equal to zero?

(d)

How much of the variation in the sample values of S&P 500 (in %) does the model estimated in part (b) explain? (Round your answer to two decimal places.)

%

(e)

Suppose that the closing price for the DJIA is 13,600. Estimate the closing price for the S&P 500. (Round your answer to the nearest integer.)