Question
In: Finance
The accompanying table gives the stock market indices for a certain company on the stock market....
The accompanying table gives the stock market indices for a certain company on the stock market. Use simple linear regression to forecast the data.
Date Index Date (numeric)
9/3/2010 10,446.78 40424
9/7/2010 10,340.24 40428
9/8/2010 10,387.43 40429
9/9/2010 10,416.96 40430
9/10/2010 10,462.14 40431
9/13/2010 10,545.67 40434
9/14/2010 10,525.62 40435
9/15/2010 10,572.66 40436
9/16/2010 10,593.78 40437
9/17/2010 10,606.94 40438
9/20/2010 10,752.82 40441
9/21/2010 10,760.77 40442
9/22/2010 10,740.59 40443
9/23/2010 10,663.99 40444
9/24/2010 10,861.13 40445
9/27/2010 10,812.19 40448
9/28/2010 10,858.73 40449
9/29/2010 10,833.32 40450
9/30/2010 10,788.48 40451
10/1/2010 10,828.31 40452
A. Identify the trend and level for the given data.
(Round the Trend to two decimal places as needed. Round the Level to the nearest integer as needed.)
B. What would be the forecasts for the next three days?
Solutions
Expert Solution
After plotting the points in excel, we see a steady upward trend
We use the forecast function in excel, for which we first calculate the daily price changes in % terms and then extrapolate those values into the future
| Our forecast | ||
| Stock price | % Chg from previous day | |
| 9/3/2010 | 10446.78 | |
| 9/7/2010 | 10340.24 | -1% |
| 9/8/2010 | 10387.43 | 0% |
| 9/9/2010 | 10416.96 | 0% |
| 9/10/2010 | 10462.14 | 0% |
| 9/13/2010 | 10545.67 | 1% |
| 9/14/2010 | 10525.62 | 0% |
| 9/15/2010 | 10572.66 | 0% |
| 9/16/2010 | 10593.78 | 0% |
| 9/17/2010 | 10606.94 | 0% |
| 9/20/2010 | 10752.82 | 1% |
| 9/21/2010 | 10760.77 | 0% |
| 9/22/2010 | 10740.59 | 0% |
| 9/23/2010 | 10663.99 | -1% |
| 9/24/2010 | 10861.13 | 2% |
| 9/27/2010 | 10812.19 | 0% |
| 9/28/2010 | 10858.73 | 0% |
| 9/29/2010 | 10833.32 | 0% |
| 9/30/2010 | 10788.48 | 0% |
| 10/1/2010 | 10828.31 | 0% |
| 10/2/2010 | 10,944.82 | 1% |
| 10/3/2010 | 11,061.66 | 1% |
| 10/4/2010 | 11,232.09 | 2% |
jeff jeffy answered 2 years agoRelated Solutions
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate of
return of a certain index of 500 stocks. Both are in percent. Test
if there is a positive relationship at the α=0.01 level of
significance.
Month
Rates of return of the index, x
Rates of return of the company stock, y
Apr-07
-5.94
-2.36
May-07
4.78
3.91
Jun-07
-2.02
-0.74
Jul-07
-6.13
-3.08
Aug-07
-4.27
-2.59...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d)
below.
Month Rates of return Rates of return of the index-x the company
stock-y
Apr-07 4.33 3.38
May-07 3.25 5.09
Jun-07 -1.78 0.54
Jul-07 -3.20 2.88
Aug-07 1.29 2.69
Sept-07 3.58 7.41
Oct-07 1.48 -4.83
Nov-07 -4.40 -2.38
Dec-07...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below.
Month Rates_of_return_of_the_index_-_x
Rates_of_return_of_the_company_stock_-_y
Apr-07 4.33 3.38
May-07 3.35 5.09
Jun-07 -1.78 0.54
Jul-07 -3.20 2.88
Aug-07 1.29 2.69
Sept-07 3.58 7.41
Oct-07 1.48 -4.83
Nov-07 -4.40 -2.38
Dec-07 -0.86 2.37
Jan-08 -6.12 -4.27
Feb-08 -3.48 -3.77
(a) Treating...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below. LOADING... Click the icon
to view the data table.
(a) Treating the rate of return of the index as the
explanatory variable, x, use technology to determine the estimates
of beta po and beta po1.
The estimate of...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below.
Month Rates_of_return_of_the_index_-_x
Rates_of_return_of_the_company_stock_-_y
Apr-07 4.33 3.28
May-07 3.35 5.09
Jun-07 -1.78 0.54
Jul-07 -3.20 2.88
Aug-07 1.29 2.69
Sept-07 3.58 7.41
Oct-07 1.48 -4.83
Nov-07 -4.40 -2.38
Dec-07 -0.86 2.37
Jan-08 -6.12 -4.27
Feb-08 -3.48 -3.77
(a) Treating...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below. LOADING... Click the icon
to view the data table. (a) Treating the rate of return of the
index as the explanatory variable, x, use technology to determine
the estimates of beta 0 and beta 1. The estimate of...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below.
Month Rates_of_return_of_the_index_-_x
Rates_of_return_of_the_company_stock_-_y
Apr-18 4.23 3.38
May-18 3.25 5.09
Jun-18 -1.78 0.54
Jul-18 -3.20 2.88
Aug-18 1.29 2.69
Sept-18 3.58 7.41
Oct-18 1.48 -4.83
Nov-18 -4.40 -2.38
Dec-18 -0.86 2.37
Jan-19 -6.12 -4.27
Feb-19 -3.48 -3.77
(a) Treating...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate of
return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below.
Month
Rates of Return of the index, x
Rates of return of the stock, y
Apr-18
4.23
3.38
May-18
3.25
5.09
Jun-18
-1.78
0.54
Jul-18
-3.20
2.88
Aug-18
1.29
2.69
Sept-18
3.58
7.41
Oct-18
1.48
-4.83
Nov-18
-4.40...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below.
Graph:
Month Rates of return of the index, x Rates of return of the
company stock, y
Apr-18 4.33 3.28
May-18 3.35 5.09
Jun-18 -1.78 0.54
Jul-18 -3.20 2.88
Aug-18 1.29 2.69
Sept-18 3.58 7.41
Oct-18 1.48 -4.83...
The data in the accompanying table represent the rate of return of a certain company stock...
The data in the accompanying table represent the rate of return
of a certain company stock for 11 months, compared with the rate
of return of a certain index of 500 stocks. Both are in percent.
Complete parts (a) through (d) below. LOADING... Click the icon
to view the data table. (a) Treating the rate of return of the
index as the explanatory variable, x, use technology to determine
the estimates of beta 0 and beta 1. The estimate of...
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