Question

In: Statistics and Probability

1. Use the data below. Date DOW S&P500 8-Apr-20 23,719.37 2,789.82 1-Apr-20 22,653.86 2,659.41 25-Mar-20 21,917.16...

1. Use the data below.

Date DOW S&P500
8-Apr-20 23,719.37 2,789.82
1-Apr-20 22,653.86 2,659.41
25-Mar-20 21,917.16 2,584.59
18-Mar-20 20,704.91 2,447.33
11-Mar-20 21,237.38 2,529.19
4-Mar-20 25,018.16 2,882.23
26-Feb-20 25,917.41 3,003.37
19-Feb-20 27,081.36 3,128.21
12-Feb-20 29,232.19 3,370.29
5-Feb-20 29,276.34 3,357.75
29-Jan-20 28,807.63 3,297.59
22-Jan-20 28,722.85 3,276.24
15-Jan-20 29,196.04 3,320.79
8-Jan-20 28,939.67 3,283.15
1-Jan-20 28,583.68 3,237.18

c. Suppose that the closing price for the DOW is 29,000. Estimate the closing price for your data for April.a..  Use the data to develop an estimated regression equation showing how your team data is related to DOW, the Dow Jones industrial average. What is the estimated regression model?
Let x represent the DOW indexes.

b.  How much of the variation in the sample values of your team data does the model estimated in part (b) explain?
Round your answer to two decimal places.

d. Preform a hypothesis test for the model (F test) with an significance of 0.05. State your conclusion.

e. Preform a hypothesis test for each of the estimated coefficients at the 0.05 level of significance. State your conclusions.

Solutions

Expert Solution

orchestra answered 3 years ago
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