a. Develop a scatter chart for these data with DJIA as the independent variable. What does the
Question:
a. Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and S&P 500?
b. Develop an estimated regression equation showing how S&P 500 is related to DJIA. What is the estimated regression model?
c. What is the 95% confidence interval for the regression parameter B? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter B1 is equal to zero?
d. What is the 95% confidence interval for the regression parameter Bo? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter Bo is equal to zero?
e. How much of the variation in the sample values of S&P 500 does the model estimated in part (b) explain?
f. Suppose that the closing price for the DJIA is 13,500. Estimate the closing price for the S&P 500.
g. Should we be concerned that the DJIA value of 13,500 used to predict the S&P 500 value in part (f) is beyond the range of the DJIA used to develop the estimated regression equation?
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams