The DATAfile TwoStocks contains adjusted monthly stock prices for technology company Apple, Inc. and consumer-goods company Procter
Question:
a. Develop a scatter diagram with P&G's stock price on the vertical axis and the stock price of Apple on the horizontal axis.
b. What appears to be the relationship between these two stock prices?
c. Compute and interpret the sample covariance.
d. Compute the sample correlation coefficient. What does this value indicate about the relationship between the stock price of P&G and the stock price of Apple, Inc.?
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Step by Step Answer:
a b The scatter diagram shows that there is a positive linear relationship as one stock price increa...View the full answer
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Related Book For 
Modern Business Statistics With Microsoft Excel
ISBN: 9781337115186
6th Edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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