50. The Dow Jones Industrial Average (DJIA) and the Standard & Poor’s (S&P) 500 Index are both used as measures of overall movement in the stock market. The DJIA is based on the price movements of 30 large companies; the S&P 500 is an index composed of 500 stocks. Some say the S&P 500 is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the S&P 500 for 10 weeks, beginning with February 11, 2000, are shown (Barron’s, April 17, 2000).

a. Compute the sample correlation coefficient for these data.

b. Discuss the association between the DJIA and the S&P 500 Index.