Question

The following data shows the price of PAO, Inc. stock over the last eight months. Month Price ($) 1 2.44 2 2.44 3 2.45 4 2.43 5 2.44 6 2.45 7 2.44 8 2.47 2. What kind of relationship exists between stock price and time (negative, positive, or no relation)? 3. In month 4, a new marketing campaign began. If stock price is an indicator of the campaign's success, was the campaign a success?

Answer 1

	Time (x)	Stock Price(Y)	xy
1	1	2.44	2.44	1	5.95
2	2	2.44	4.88	4	5.95
3	3	2.45	7.35	9	6.00
4	4	2.43	9.72	16	5.90
5	5	2.44	12.2	25	5.95
6	6	2.45	14.7	36	6.00
7	7	2.44	17.08	49	5.95
8	8	2.47	19.76	64	6.10
Sum	36	19.56	88.13	204	47.83

Correlation between time and stock price

= 0.5367

There is a positive correlation( If time is increased the stock price will also increased and vice versa)

I have generated a scatter plot using excel.

1. Input the data in excel an select it.
2. Click on 'Insert' in the Toolbar and select 'Scatter plot'
3. Make sure that the 'x-axis' shows the time and 'Stock prices' are shown by 'y-axis'.If not then it can be changed by 'Select data' option after right clicking on the graph.

After 4 months a new campaign was introduced. From the graph it can be seen that the stock prices are gradually increasing on a level greater than before 4 months. So we can say that the campaign was a success.