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
orchestra answered 3 years agoRelated Solutions
Date DOW RUSSELL 8-Apr-20 23,719.37 1,246.73 1-Apr-20 22,653.86 1,139.17 25-Mar-20 21,917.16 1,153.10 18-Mar-20 20,704.91 1,096.54 11-Mar-20...
Date
DOW
RUSSELL
8-Apr-20
23,719.37
1,246.73
1-Apr-20
22,653.86
1,139.17
25-Mar-20
21,917.16
1,153.10
18-Mar-20
20,704.91
1,096.54
11-Mar-20
21,237.38
1,106.51
4-Mar-20
25,018.16
1,350.90
26-Feb-20
25,917.41
1,486.08
19-Feb-20
27,081.36
1,571.90
12-Feb-20
29,232.19
1,683.52
5-Feb-20
29,276.34
1,677.51
29-Jan-20
28,807.63
1,656.77
22-Jan-20
28,722.85
1,658.31
15-Jan-20
29,196.04
1,685.90
8-Jan-20
28,939.67
1,675.74
1-Jan-20
28,583.68
1,658.31
a. Create a scatter plot. Say what you see.
b. Use the data to develop an estimated regression
equation showing how your team data is related to DOW, the Dow
Jones industrial average....
Use the following table to answer the question below. Expected ret. std. dev. S&P500 13% 25%...
Use the following table to answer the question below.
Expected ret.
std. dev.
S&P500
13%
25%
ABC Fund
20%
29%
T-bill
4%
Borrow
8%
What is the highest fee that a client who is currently borrowing
would be willing to pay to invest in ABC fund instead of
S&P500?
Round your answer to 4 decimal places. For example, if your
answer is 3.205%, then please write down 0.0321.
Month Sales (2005) Sales (2006) Jan 5 21 Feb 8 20 Mar 10 29 Apr 18...
Month
Sales (2005)
Sales (2006)
Jan
5
21
Feb
8
20
Mar
10
29
Apr
18
32
May
26
44
Jun
35
58
Jul
28
46
Aug
20
32
Sep
14
27
Oct
8
13
Nov
6
11
Dec
26
52
a.Plot the data using Minitab. What kind of pattern do you
observe?
b.Develop a trend line equation for this data (Use Minitab).
c.Decompose the above time series using a multiplicative model.
Store the trend line, detrended data, seasonals, seasonally...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
Suppose that the next S&P500 return will be 7%. Use the CAPM
model to calculate the expected return...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
Assuming normal distribution, what is the probability that the
next S&P500 return will be greater than 0?
Please...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
What is the sample standard deviation of the stock A
returns?
Please write an answer in decimals. For...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
A
S_P500
-0.0222
0.0032
-0.0048
-0.0058
0.1333
0.0434
0.0765
0.1081
-0.0161
-0.0121
0.1250
0.1400
0.0145
0.0368
-0.0475
-0.0454
0.0430
0.0577
-0.0260
-0.1374
0.0071
0.0064
0.0249
0.0186
0.0850
0.0215
-0.0624
-0.0752
0.0933
0.0365
0.0456
0.0528
-0.0632
-0.0131
0.0450
0.0009
0.0200
0.0017
0.0280
0.0985
Assuming normal distribution, what is the probability that the
next stock A return will be less than 0?...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%).
Stock A S_P500
-0.0222 0.0032
-0.0048 -0.0058
0.1333 0.0434
0.0765 0.1081
-0.0161 -0.0121
0.1250 0.1400
0.0145 0.0368
-0.0475 -0.0454
0.0430 0.0577
-0.0260 -0.1374
0.0071 0.0064
0.0249 0.0186
0.0850 0.0215
-0.0624 -0.0752
0.0933 0.0365
0.0456 0.0528
-0.0632 -0.0131
0.0450 0.0009
0.0200 0.0017
0.0280 0.0985
Suppose that the next S&P500 return will be 7%. Use the CAPM
model to calculate the expected...
Below are returns on the stock A and S&P500 index. All numbers are in decimals (-0.0222...
Below are returns on the stock A and S&P500 index. All
numbers are in decimals (-0.0222 is equivalent to -2.22%). A S_P500
-0.0222 0.0032 -0.0048 -0.0058 0.1333 0.0434 0.0765 0.1081 -0.0161
-0.0121 0.1250 0.1400 0.0145 0.0368 -0.0475 -0.0454 0.0430 0.0577
-0.0260 -0.1374 0.0071 0.0064 0.0249 0.0186 0.0850 0.0215 -0.0624
-0.0752 0.0933 0.0365 0.0456 0.0528 -0.0632 -0.0131 0.0450 0.0009
0.0200 0.0017 0.0280 0.0985 What is the sample standard deviation
of the S&P500 returns? Please write an answer in decimals. For
example,...
Presented below is information related to Bridgeport Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30...
Presented below is information related to Bridgeport
Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost
$17,550 $17,667 $19,890 $16,380 Inventory at LCNRV 16,965 14,742
18,252 15,561 Purchases for the month 19,890 28,080 31,005 Sales
for the month 33,930 40,950 46,800 Partially correct answer. Your
answer is partially correct. Try again. From the information,
prepare (as far as the data permit) monthly income statements in
columnar form for February, March, and April. The inventory is to
be...
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