Ch. 3: Calculating Desor Suppose the following data set contains the monthly adjusted stock prices for technology company A Date A B Date A B 6/1/2013 43.44 64.71 12/1/2015 99.54 72.31 7/1/2013 49.71 67.54 1/1/2016 91.98 74.42 8/1/2013 53.60 65.98 2/1/2016 91.35 73.77 73.77 9/1/2013 54.00 64.00 3/1/2016 103.67 75.65 10/1/2013 60.40 68.44 4/1/2016 90.02 73.61 11/1/2013 64.32 71.99 5/1/2016 94.90 75.09 12/1/2013 67.69 69.55 6/1/2016 91.37 78.49 1/1/2014 60.29 65.40 7/1/2016 99.69 78.36 2/1/2014 63.43 67.68 8/1/2016 101.51 81.62 3/1/2014 67.57 69.38 9/1/2016 108.82 83.92 4/1/2014 74.39 71.08 10/1/2016 109.30 81.13 5/1/2014 79.87 70.11 11/1/2016 106.36 77.63 6/1/2014 85.47 68.17 12/1/2016 112.09 79.17 7/1/2014 87.95 68.05 1/1/2017 117.49 82.53 8/1/2014 94.37 72.73 2/1/2017 132.76 86.53 9/1/2014 93.21 73.29 3/1/2017 139.88 85.35 10/1/2014 99.99 13.20 79.84 76.42 4/1/2017 139.87 82.93 11/1/2014 110.21 79.84 5/1/2017 148.80 82.31 12/1/2014 102.66 80.43 6/1/2017 140.82 83.40 1/1/2015 109.03 74.35 7/1/2017 145.45 87.95 2/1/2015 119.64 75.64 8/1/2017 160.49 89.06 Ch 3 Calculating Descriptive .. 12/1/2014 102.66 80.43 6/1/2017 140.82 83.40 1/1/2015 109.03 74.35 7/1/2017 145.45 $7.95 2/1/2015 119.64 75.64 8/1/2017 160.49 89.06 3/1/2015 116.32 72.77 9/1/2017 151.36 86.80 4/1/2015 117.00 70.58 10/1/2017 166.11 81.27 5/1/2015 121.84 70.14 11/1/2017 169.88 84.49 6/1/2015 117.76 70.01 12/1/2017 166.90 89.35 7/1/2015 113.85 68.61 1/1/2018 165.11 83.90 8/1/2015 105.91 63.66 2/1/2018 175.72 73.80 9/1/2015 103.31 103.91 64.82 3/1/2018 166.14 74.55 10/1/2015 112.66 68.89 4/1/2018 163.63 72.68 11/1/2018 111.51 68.09 5/1/2018 186.86 83.31 Develop a scatter diagram with company A stock price on the horizontal axis and company stock price on the vertical axis. 200 100 100 80 150 60 60 A Adjusted Stock Price 100 B Adjusted Stock Price B Adjusted Stock Price 40 40 50 20 D 100 0 200 200 20 40 60 80 B Adjusted Stock Price 50 100 150 A Adjusted Stock Price 50 100 150 A Adjusted Stock Price 200 150 MacBook Air d 100 0 20 40 60 80 B Adjusted Stock Price CAS: Calculating Descriptive S 50 100 A Adjusted Stock Price 150 200 0 O 50 100 150 A Adjusted Stock Price 20 Oo 200 150 A Adjusted Stock Price 100 50 0 0 100 20 40 60 80 B Adjusted Stock Price (b) What appears to be the relationship between these two stock prices? The scatter diagram shows a positive Brelationship with higher company A stock prices associated with higher company B stock prices (c) Compute the sample covariance. (Round your answer to two decimal places.) 171.55 X Interpret the sample covariance. There is a positive relationship between the two variables. There is a negative relationship between the two variables, There is no relationship between the two variables. () Compute the sample correlation coefficient. (Round your answer to two decimal places.) What does this value indicate about the relationship between the stock price of company A and the stock price of company B? There is a moderately strong positive relationship between the two variables. There is a moderately strong negative relationship between the two variables Ch. 3: Calculating Desor Suppose the following data set contains the monthly adjusted stock prices for technology company A Date A B Date A B 6/1/2013 43.44 64.71 12/1/2015 99.54 72.31 7/1/2013 49.71 67.54 1/1/2016 91.98 74.42 8/1/2013 53.60 65.98 2/1/2016 91.35 73.77 73.77 9/1/2013 54.00 64.00 3/1/2016 103.67 75.65 10/1/2013 60.40 68.44 4/1/2016 90.02 73.61 11/1/2013 64.32 71.99 5/1/2016 94.90 75.09 12/1/2013 67.69 69.55 6/1/2016 91.37 78.49 1/1/2014 60.29 65.40 7/1/2016 99.69 78.36 2/1/2014 63.43 67.68 8/1/2016 101.51 81.62 3/1/2014 67.57 69.38 9/1/2016 108.82 83.92 4/1/2014 74.39 71.08 10/1/2016 109.30 81.13 5/1/2014 79.87 70.11 11/1/2016 106.36 77.63 6/1/2014 85.47 68.17 12/1/2016 112.09 79.17 7/1/2014 87.95 68.05 1/1/2017 117.49 82.53 8/1/2014 94.37 72.73 2/1/2017 132.76 86.53 9/1/2014 93.21 73.29 3/1/2017 139.88 85.35 10/1/2014 99.99 13.20 79.84 76.42 4/1/2017 139.87 82.93 11/1/2014 110.21 79.84 5/1/2017 148.80 82.31 12/1/2014 102.66 80.43 6/1/2017 140.82 83.40 1/1/2015 109.03 74.35 7/1/2017 145.45 87.95 2/1/2015 119.64 75.64 8/1/2017 160.49 89.06 Ch 3 Calculating Descriptive .. 12/1/2014 102.66 80.43 6/1/2017 140.82 83.40 1/1/2015 109.03 74.35 7/1/2017 145.45 $7.95 2/1/2015 119.64 75.64 8/1/2017 160.49 89.06 3/1/2015 116.32 72.77 9/1/2017 151.36 86.80 4/1/2015 117.00 70.58 10/1/2017 166.11 81.27 5/1/2015 121.84 70.14 11/1/2017 169.88 84.49 6/1/2015 117.76 70.01 12/1/2017 166.90 89.35 7/1/2015 113.85 68.61 1/1/2018 165.11 83.90 8/1/2015 105.91 63.66 2/1/2018 175.72 73.80 9/1/2015 103.31 103.91 64.82 3/1/2018 166.14 74.55 10/1/2015 112.66 68.89 4/1/2018 163.63 72.68 11/1/2018 111.51 68.09 5/1/2018 186.86 83.31 Develop a scatter diagram with company A stock price on the horizontal axis and company stock price on the vertical axis. 200 100 100 80 150 60 60 A Adjusted Stock Price 100 B Adjusted Stock Price B Adjusted Stock Price 40 40 50 20 D 100 0 200 200 20 40 60 80 B Adjusted Stock Price 50 100 150 A Adjusted Stock Price 50 100 150 A Adjusted Stock Price 200 150 MacBook Air d 100 0 20 40 60 80 B Adjusted Stock Price CAS: Calculating Descriptive S 50 100 A Adjusted Stock Price 150 200 0 O 50 100 150 A Adjusted Stock Price 20 Oo 200 150 A Adjusted Stock Price 100 50 0 0 100 20 40 60 80 B Adjusted Stock Price (b) What appears to be the relationship between these two stock prices? The scatter diagram shows a positive Brelationship with higher company A stock prices associated with higher company B stock prices (c) Compute the sample covariance. (Round your answer to two decimal places.) 171.55 X Interpret the sample covariance. There is a positive relationship between the two variables. There is a negative relationship between the two variables, There is no relationship between the two variables. () Compute the sample correlation coefficient. (Round your answer to two decimal places.) What does this value indicate about the relationship between the stock price of company A and the stock price of company B? There is a moderately strong positive relationship between the two variables. There is a moderately strong negative relationship between the two variables