GDP and DJIA 2017. Does the Dow Jones Industrial Average (DJIA) ref lect the economy as measured by the Gross Domestic Product (GDP)? Here’s a plot and a regression. (Both are converted to 2010 dollars to remove the effects of inf lation. GDP is in $B to make the numbers manageable.)

Response variable is: DJIA (2010$)
R squared = 72.5% s = 2242 Variable Coefficient Intercept -492.074 GDP(2010$B) 0.839340

a) Interpret the slope coefficient of this regression.

b) What does the R2 report?

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DJIA Constant 2010$ 16000 12000 8000 88 4000 00 6000 9000 12000 15000 GDP Constant 2010$B 00