Question: The DATAfile TwoStocks contains adjusted monthly stock prices for technology company Apple, Inc. and consumer-goods company Procter and Gamble (P&G) for the years 2010-2014. a.
The DATAfile TwoStocks contains adjusted monthly stock prices for technology company Apple, Inc. and consumer-goods company Procter and Gamble (P&G) for the years 2010-2014.
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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a b The scatter diagram shows that there is a positive linear relationship as one stock price increa... View full answer
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