Question
In: Statistics and Probability
Use the International Stock Market database from “Excel Databases.xls” on Blackboard. Use Excel to develop a...
Use the International Stock Market database from “Excel Databases.xls” on Blackboard. Use Excel to develop a multiple regression model to predict the DJIA by the Nasdaq, the S&P 500, the Nikkei, the Hang Seng, the FTSE 100, and the IPC. Performing a stepwise regression analysis at a 5% level of significance, which independent variable is the best single predictor of the DJIA? This is Step 1 of the stepwise regression.
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Nasdaq |
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S&P 500 |
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Nikkei |
||
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Hang Seng |
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FTSE 100 |
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IPC |
https://drive.google.com/file/d/19TI3HId0greXS0nkmDuoITv1IMPF_TUK/view?usp=sharing
Need help tonight please.
Solutions
Expert Solution
Answer:
performing linear regression on the US International Stock Market database.
step 1) Performing a stepwise regression analysis at a 5% level of significance, which independent variable is the best single predictor of the DJIA.
step 2)
Excel Result Summary:
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | 0.989049 | |||||||
| R Square | 0.978217 | |||||||
| Adjusted R Square | 0.975883 | |||||||
| Standard Error | 218.0548 | |||||||
| Observations | 63 | |||||||
| ANOVA | ||||||||
| df | SS | MS | F | Significance F | ||||
| Regression | 6 | 119575403.5 | 19929234 | 419.1401675 | 1.22232E-44 | |||
| Residual | 56 | 2662682.286 | 47547.9 | |||||
| Total | 62 | 122238085.8 | ||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
| Intercept | 1412.33 | 381.6344136 | 3.70074 | 0.000492201 | 647.8242553 | 2176.835449 | 647.8242553 | 2176.835449 |
| NASDAQ | -1.25896 | 0.633491091 | -1.98734 | 0.051784186 | -2.527995529 | 0.010074767 | -2.527995529 | 0.010074767 |
| S&P 500 | 10.79855 | 1.633371114 | 6.611204 | 1.51594E-08 | 7.526514683 | 14.07058573 | 7.526514683 | 14.07058573 |
| NIKKEI 225 | -8.83781 | 4.188979299 | -2.10978 | 0.039359655 | -17.22934126 | -0.446273459 | -17.22934126 | -0.446273459 |
| HANG SENG | 0.489284 | 0.166200981 | 2.943928 | 0.004710529 | 0.156343096 | 0.822224243 | 0.156343096 | 0.822224243 |
| FTSE 100 | -0.1283 | 0.10733882 | -1.19531 | 0.237002923 | -0.343328787 | 0.086722203 | -0.343328787 | 0.086722203 |
| IPC | 0.170992 | 0.110333521 | 1.54977 | 0.126830134 | -0.050032986 | 0.392016216 | -0.050032986 | 0.392016216 |
step 3)
conclusion:
here we decide which variable is the best or significant using t stat, the large value of t stat ( modulus of t) decide which independent variable is best for DJIA.
In the above summary of linear regression, the S&P 500 is the best independent variable for DJIA
orchestra answered 2 years agoRelated Solutions
Use the International Stock Market database from “Excel Databases.xls” on Blackboard. Use Excel to develop a...
Use the International Stock Market database from “Excel
Databases.xls” on Blackboard. Use Excel to develop a multiple
regression model to predict the Nikkei by the DJIA, the Nasdaq, the
S&P 500, the Hang Seng, the FTSE 100, and the IPC. Assume a 1%
level of significance.
What percent of residuals are within 1 standard error? Write
your answer as a number rounded to 1 decimal place. Do not include
the % sign in your answer.
Excel Data:
https://drive.google.com/file/d/1TQG5r2wzLGk--75whZXyb0SDTHZTWS0S/view?usp=sharing
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500, the Nikkei, the Hang Seng, the FTSE 100, and the IPC.
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backward elimination regression analysis at a 5% level of
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Use the Financial database from “Excel Databases.xls” on
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Use Excel to develop a regression model for the Consumer Food
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SUMMARY OUTPUT
Regression Statistics
Multiple R
0.697463374
R
Square
0.486455158
Adjusted R Square
0.483861497
Standard Error
590.2581194
Observations
200
ANOVA
df
SS
MS...
1) Use Excel to develop a regression model for the Consumer Food Database (using the “Excel...
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Database (using the “Excel Databases.xls” file on Blackboard) to
predict Annual Food Spending by Annual Household Income for those
living in the Metro area only.
Suppose a household in the metro area has an annual income of
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to 2 decimal places....
Use Excel to develop a regression model for the Hospital Database to predict the number of...
Use Excel to develop a regression model for the Hospital
Database to predict the number of Personnel by the number of
Births. How many residuals are within 1 standard error? Write your
answer as a whole number.
Personnel
Births
792
312
1762
1077
2310
1027
328
355
181
168
1077
3810
742
735
131
1
1594
1733
233
257
241
169
203
430
325
0
676
2049
347
211
79
16
505
2648
1543
2450
755
1465
959
0
325...
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