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Problem 1 The data on the SPSS file contain the stock prices of four companies, collected weekly for 53 consecutive weeks, ending May 22, 2016.
Problem 1 The data on the SPSS file contain the stock prices of four companies, collected weekly for 53 consecutive weeks, ending May 22, 2016. The variables are: Week - Closing date for stock prices. MSFT - Stock price of Microsoft Ford - Stock price of Ford Motor Company GM - Stock price General Motors IAL - Stock price of International Aluminum. A. Calculate the correlation coefficient for each pair of stocks using SPSS Correlations MSFT Ford GM IAL MSFT Pearson Correlation 1 -.072 -.392 .067 Sig. (2-tailed) .610 004 .634 N 53 53 53 53 Ford Pearson Correlation -.072 1 860 -.916 Sig. (2-tailed) 610 .000 .000 N 53 53 53 53 GM Pearson Correlation -.392 860 1 -.836 Sig. (2-tailed) 004 .000 000 N 53 53 53 53 IAL Pearson Correlation 067 -.916 -.836 1 Sig. (2-tailed) .634 .000 000 N 53 53 53 53 **. Correlation is significant at the 0.01 level (2-tailed). B. Interpret the meaning of r for each pair. If the r value is close to -1 or -1 it means the stock prices are related and based upon the sign will increase when increased or decrease when increased and vice versa. As the r value gets closer to zero it means there is no relationship meaning the stock price of one does not affect the stock price of another
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