Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help analyzing and computing the data found in the attached spreadsheet. The Russell 1000 is a stock market index consisting of the largest

I need help analyzing and computing the data found in the attached spreadsheet.

The Russell 1000 is a stock market index consisting of the largest U.S. companies. The Dow Jones industrial Average is based on 30 large companies. The data giving the annual percentage returns for each of these stock indexes for 25 years are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions.

a. Which of the following scatter diagrams accurately represents the data set?

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
A B C D Year DJIA % Return Russell 1000 % Return 1988 13.72 17.46 1989 28.46 25.38 UIAWI 1990 -8.87 -8.16 1991 21.11 33.07 1992 0.43 3.30 1993 9.18 5.57 8 1994 2.75 -1.74 9 1995 31.58 31.92 10 1996 28.67 22.57 11 1997 22.59 28.45 12 1998 19.57 25.27 13 1999 29.55 16.36 14 2000 -5.13 -8.93 15 2001 -10.93 -16.60 16 2002 -16.04 -19.91 17 2003 23.43 24.39 18 2004 -0.37 13.63 19 2005 2.57 9.07 20 2006 12.86 16.23 21 2007 7.95 8.59 22 2008 -30.19 -39.83 23 2009 18.70 28.32 24 2010 13.60 17.79 25 2011 1.09 3.47 26 2012 3.82 13.72 27 28b. Compute the sample mean and standard deviation for each index (to 2 decimals). sample mean standard deviation DJIA : Russell 1000: c. Compute the sample correlation coefficient for these data (to 3 decimals). d. Discuss similarities and differences in these two indexes. The variance of the Russell 1000 is slightly than that of the DJIA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trigonometry

Authors: David M Kennedy, James Stewart, Lothar Redlin, Saleem Watson

2nd Edition

1285226089, 9781285226088

More Books

Students also viewed these Mathematics questions