5. Time-series graphs Blue chip stocks are stocks of companies highly valued by investors because of their long history of stable earnings and dividends. These companies tend to be large and are well known as leaders in their industries. Day 1 2 3 4 5 6 7 8 9 Table 1 Closing Price (Dollars) 80.3 81.2 81.3 81.3 81.8 83.2 83.8 84.0 86.8 A typical blue chip stock is International Business Machines Corp. (IBM), whose prices have been the subject of many statistical analyses. Table 1 shows IBM stock closing prices for nine consecutive trading days from October 6-18, 2006. (The prices are rounded to the closest tenth of a dollar.) Use the blue points (circle symbol) to plot the time-series on the graph below. (Hint: Be sure to plot from left to right. Hover your mouse over each point you plot to double-check that the coordinates are correct.) PRICE [Dollars] 88.0 86.0 84.0 82.0 80.0 78.0 1 2 3 4 5 DAY 6 7 8 9 0 ? The preceding time-series graph shows trend. Based on information shown in the time-series graph alone, we conclude that the trend will continue beyond the time period of the graph. 5. Time-series graphs Blue chip stocks are stocks of companies highly valued by investors because of their long history of stable earnings and dividends. These companies tend to be large and are well known as leaders in their industries. Day 1 2 3 4 5 6 7 8 9 Table 1 Closing Price (Dollars) 80.3 81.2 81.3 81.3 81.8 83.2 83.8 84.0 86.8 A typical blue chip stock is International Business Machines Corp. (IBM), whose prices have been the subject of many statistical analyses. Table 1 shows IBM stock closing prices for nine consecutive trading days from October 6-18, 2006. (The prices are rounded to the closest tenth of a dollar.) Use the blue points (circle symbol) to plot the time-series on the graph below. (Hint: Be sure to plot from left to right. Hover your mouse over each point you plot to double-check that the coordinates are correct.) PRICE [Dollars] 88.0 86.0 84.0 82.0 80.0 78.0 1 2 3 4 5 DAY 6 7 8 9 0 ? The preceding time-series graph shows trend. Based on information shown in the time-series graph alone, we conclude that the trend will continue beyond the time period of the graph