(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?

The scatter chart indicates there may be a positive linear relationship between DJIA and S&P 500.The scatter chart indicates there may be a negative linear relationship between DJIA and S&P 500. The scatter chart indicates there may be no noticeable linear 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? (Round your numerical values to four decimal places.)

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(c)

What is the 95% confidence interval for the regression parameter ₁? (Round your answers to three decimal places.)

to

Based on this interval, what conclusion can you make about the hypotheses that the regression parameter ₁ is equal to zero?

Because this interval ---Select--- does does not include zero, we ---Select--- reject fail to reject the hypothesis that ₁ = 0.

(d)

What is the 95% confidence interval for the regression parameter ₀? (Round your answers to three decimal places.)

to

Based on this interval, what conclusion can you make about the hypotheses that the regression parameter ₀ is equal to zero?

Because this interval ---Select--- does does not include zero, we ---Select--- reject fail to reject the hypothesis that ₀ = 0.

(e)

How much of the variation in the sample values of S&P 500 (in %) does the model estimated in part (b) explain? (Round your answer to two decimal places.)

%

(f)

Suppose that the closing price for the DJIA is 13,600. Estimate the closing price for the S&P 500. (Round your answer to the nearest integer.)

(g)

Should we be concerned that the DJIA value of 13,600 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?

The maximum DJIA in the sample data is 13,243, so when the DJIA value of 13,600 is used to predict the S&P 500 value in part (f) the regression model has ---Select--- been not been extrapolated beyond the experimental region of the data, so you should ---Select--- be not be concerned about this prediction.