The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following

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The Wellton Fund is a balanced mutual fund that includes a mix of stocks and bonds. Following are the year-end share prices of the fund and Dow Jones Industrial Average (DJIA) for a 20-year period:

Year Share Price DJIA 1 $14.75 1,046 2 15.06 1,258 3 14.98 1,211 4 15.73 1,546 5 16.11 1,895 6 16.07 1,938 7 16.78 2,168 8 17.69 2,753 9 16.90 2,633 10 17.81 3,168 11 19.08 3,301 12 20.40 3,754 13 19.39 3,834 14 24.43 5,117 15 26.46 6,448 16 29.45 7,908 17 29.35 9,181 18 27.96 11,497 19 28.21 10,786 20 27.26 10,150 Develop a linear regression model for these data and forecast the fund share price for a DJIA of 12,000. Does there appear to be a strong relationship between the fund’s share price and the DJIA? LO.1

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