Develop a regression model to predict the price of stock

Assignment Help Basic Statistics
Reference no: EM13243270

The closing stock price for each of two stocks was recorded over a 12-month period. The closing price for the Dow Jones Industrial Average (DJIA) was also recorded over this same time period. These values are shown in the following table:

271_Develop a regression model.png

(a) Develop a regression model to predict the price of stock 1 based on the Dow Jones Industrial Average.

(b) Develop a regression model to predict the price of stock 2 based on the Dow Jones Industrial Average.

(c) Which of the two stocks is most highly correlated to the Dow Jones Industrial Average over this timeperiod?

Reference no: EM13243270

Questions Cloud

Find the power generated by the emf of the battery : An ideal Voltmeter is connected across the terminals of a 12 Volt battery and a light bulb with R = 4.5 ohms is also connected across the battery terminals, Find the power generated by the Emf of the battery
According to aristotle-how might one attain the good life : According to Aristotle, how might one attain the "good life"? Studying the works of the great philosophers Balancing action between extremes of behavior Experimenting and formulating a hypothesis Discovering the essence of an individual
What is the tension in the string as the block falls : A mass m1 = 3.8 kg rests on a frictionless table and connected by a massless string over a massless pulley to another mass m2 = 5.5 kg which hangs freely from the string, What is the tension in the string as the block falls
What do the domesday survey : What do the Domesday survey (Specifically, the land of Robert Malet) and commeda contracts suggest about the basis of medieval economy in the eleventh and twelfth centuries?
Develop a regression model to predict the price of stock : Develop a regression model to predict the price of stock 1 and 2 based on the Dow Jones Industrial Average
What will be his least distance of distinct vision : A certain person can see clearly objects at distances between20cm and 250cm from his eyes, what will be his least distance of distinct vision, when he is wearing the spectales
Describe the diverse advocates of progressive reforms : describe the diverse advocates of Progressive reforms and reformers, including the following intellectuals and their idea
What factors would increase supply of a manufactured product : Explain what factors would increase the supply (shift the supply line to the right) of a manufactured product like white bread and what factors would cause a decrease in demand (shift of the demand curve to the left) for that same product.
Find the refractive index of this liquid : A narrow beam of light is incident normally on one face of equiangular glass prism of RI 1.45. Find the refractive index of this liquid and draw a diagram showing the path of rays

Reviews

Write a Review

Basic Statistics Questions & Answers

  Approximate of cameras sold

The camera department of a large department store sells three different brands of cameras: Proxima, Yakima, and Tetron. Approximately 60% of the cameras sold are Yakimas with Tetrons accounting for 30% of sales and Proxima the remaining 10%.

  Random sampling and random assignment

Develop a hypothesis, label the independent and dependent variables, discuss what the experimental and control groups are doing in this study, and decide who (and how many) participants are needed. Be sure to discuss random sampling and random ass..

  Construct interval estimates for the population

Construct the 90% and 95% interval estimates for the population mean weekly sales.

  Calculate the test statistic for the claim

Calculate the test statistic for the claim in, using the following information. Sample information: A random sample of 40 repairs has a sample mean price of $132.09 and a sample standard deviation of $13.58.

  Find standard deviation for cholesterol level

A standard deviation of mg/dL. What is Mrs. Brown's cholesterol level? Carry your intermediate computations to at least four decimal places. Round your answer to at least one decimal place.

  Create confidence interval for difference in probabilities

Construct a 99% confidence interval for the difference in the probabilities of getting a fracture for non-cola drinking and cola drinking kids.

  Well-designed sample of at least 30 units

Select a well-designed sample of at least 30 units. (Describe the population to be studied and the sampling frame). Two variables should be measured with a potential for correlation; if you measure more than two variables, you must correlate two at a..

  Measures of central tendency-solution set

Students in the social work course received the following course grades. Create a frequency distribution for this data. Compute the mean. Determine the median.

  Mean of population if the sample mean is given

A random sample of 100 observations is obtained from a normally distributed population with a standard deviation of 10. What is a 95% confidence interval for the mean of the population if the sample mean is 40?

  Sample mean and sample standard deviation-random selection

Calculate the sample mean and sample standard deviation.

  Test of hypothesis-z statistic and p-value

A manufacturer claims that the mean lifetime, mean, of its light bulbs is 52 months. The standard deviation of these lifetimes is 7 months. Ninety bulbs are selected at random, and their mean lifetime is found to be 55 months.

  Type of inference being made

lowering the price does not decrease this behavior and we should not decide to lower prices based on this research." Comment on the executive's conclusion. What type of inference is being made? Will the decision not to lower prices be a good one.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd