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For the years 2004 to 201?, the daily stock prices of Google and Amazon have a correlation of 0.96. 1. Before drawing any conclusions from
For the years 2004 to 201?, the daily stock prices of Google and Amazon have a correlation of 0.96. 1. Before drawing any conclusions from the correlation, what would you expect to see? Why? 2. If your coworkers tracked the same prices in euros, how will this change the correlation? 1ll'vill you need to know the exchange rate between euros and US dollars to draw conclusions? 3. If you standardize both prices, how will this affect the correlation? 4. In general, if on a given day the price of Google is relatively low, is the price of Amazon likely to be relatively low as well? 5. If on any given day the price of Google stock is high is the price of Amazon stock denitely high as well
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