Question 1. built a scatterplot for the Standard and Poor's/Toronto Stock Exchange Index time series and compute the correlation coefficient and coefficient of determination. Explain the results of these coefficients in the context of the problem.

Question 2. Compute the least squares regression line and interpret the slope of the regression line in the context of this problem.

Question 3. Predict the closing price of the Standard and Poor's/Toronto Stock Exchange Composite Index in July 2018 using the least-squares regression line. Compare that value to the actual value from the excel table. Are the values different? Is there a discrepancy? Explain your answer. Conduct the same prediction now for value July 2028 using the least-squares regression line. Comment on the value obtained in terms of the regression model.

Question 4. Using Excel, perform exponential smoothing to the Standard and Poor's/Toronto Stock Exchange Composite Index time series using an exponential smoothing constant w = 0.8 and w = 0.2. What do you observe? Comment on the results.

Question 5. From the exponential smoothing time series generated, forecast the Index value and forecast errors for July 2022 for both smoothing constants w = 0.8 and w = 0.2. Comment on your results.

Question 6. Comment on the reliability of the least-squares regression and the exponential smoothing time series models, in general, in conducting predict

Toronto Stock Exchange Statistics	Standard and Poor's/Toronto Stock Exchange Composite Index	Standard and Poor's/Toronto Stock Exchange 60 Index
Reference period
		Index
Jan-98	6,700.20	381.23
Feb-98	7,092.49	406.82
Mar-98	7,558.50	435.32
Apr-98	7,664.99	440.34
May-98	7,589.78	441.02
Jun-98	7,366.89	427.01
Jul-98	6,931.43	400.51
Aug-98	5,530.71	318.75
Sep-98	5,614.12	321.55
Oct-98	6,208.28	359.99
Nov-98	6,343.87	369.21
Dec-98	6,485.94	375.98
Jan-99	6,729.56	396.87
Feb-99	6,312.69	368.25
Mar-99	6,597.79	384.98
Apr-99	7,014.70	410.85
May-99	6,841.80	400.07
Jun-99	7,010.07	411.04
Jul-99	7,081.03	415.1
Aug-99	6,970.81	407.32
Sep-99	6,957.72	408.54
Oct-99	7,256.22	433.85
Nov-99	7,523.23	447.29
Dec-99	8,413.75	495.86
Jan-00	8,481.11	498.59
Feb-00	9,128.99	519.93
Mar-00	9,462.39	568.89
Apr-00	9,347.61	559.86
May-00	9,251.99	556.35
Jun-00	10,195.45	617.91
Jul-00	10,406.31	638.35
Aug-00	11,247.91	687.08
Sep-00	10,377.92	618.28
Oct-00	9,639.57	569.28
Nov-00	8,819.92	525.33
Dec-00	8,933.68	528.72
Jan/2001	9,321.87	554.84
Feb/2001	8,078.72	472.6
Mar/2001	7,608.00	443.04
Apr/2001	7,946.63	459
May/2001	8,161.87	471.09
Jun/2001	7,736.35	444.84
Jul/2001	7,689.69	445.15
Aug/2001	7,399.22	430.33
Sep/2001	6,838.56	398.2
Oct/2001	6,885.70	397.55
Nov/2001	7,425.65	431.78
Dec/2001	7,688.41	442.55
Jan/2002	7,648.49	438.92
Feb/2002	7,637.50	436.48
Mar/2002	7,851.47	446.74
Apr/2002	7,663.39	434.04
May/2002	7,656.13	429.17
Jun/2002	7,145.61	401.2
Jul/2002	6,605.42	371.06
Aug/2002	6,611.95	371.8
Sep/2002	6,180.42	345.06
Oct/2002	6,248.79	351.36
Nov/2002	6,570.42	372.63
Dec/2002	6,614.54	373.15
Jan/2003	6,569.49	370.48
Feb/2003	6,555.12	371.97
Mar/2003	6,343.29	361.23
Apr/2003	6,586.07	373.94
May/2003	6,859.80	388.11
Jun/2003	6,983.14	394.63
Jul/2003	7,257.92	409.03
Aug/2003	7,510.32	423.28
Sep/2003	7,421.13	416.58
Oct/2003	7,772.70	436.2
Nov/2003	7,859.39	438.25
Dec/2003	8,220.89	458.72
Jan/2004	8,521.39	476.64
Feb/2004	8,788.49	490.59
Mar/2004	8,585.93	475.59
Apr/2004	8,243.97	455.87
May/2004	8,417.32	463.61
Jun/2004	8,545.58	472.78
Jul/2004	8,458.07	469.34
Aug/2004	8,377.03	465.48
Sep/2004	8,668.29	482.19
Oct/2004	8,870.97	496.37
Nov/2004	9,030.05	501.18
Dec/2004	9,246.65	511.91
Jan/2005	9,204.05	506.75
Feb/2005	9,668.32	532.08
Mar/2005	9,612.38	533.87
Apr/2005	9,369.30	522.02
May/2005	9,607.30	536.89
Jun/2005	9,902.77	555.06
Jul/2005	10,422.93	585.02
Aug/2005	10,668.94	600.4
Sep/2005	11,011.83	620.04
Oct/2005	10,383.32	585.55
Nov/2005	10,824.14	611.09
Dec/2005	11,272.26	634.72
Jan/2006	11,945.64	672.69
Feb/2006	11,688.34	659.27
Mar/2006	12,110.61	682.54
Apr/2006	12,204.17	685.33
May/2006	11,744.52	657.38
Jun/2006	11,612.87	653.46
Jul/2006	11,830.96	667.43
Aug/2006	12,073.75	682.21
Sep/2006	11,761.27	673.16
Oct/2006	12,344.59	703.41
Nov/2006	12,752.38	732.35
Dec/2006	12,908.39	742.77
Jan/2007	13,034.12	747.47
Feb/2007	13,045.02	743.77
Mar/2007	13,165.50	752.45
Apr/2007	13,416.68	765.35
May/2007	14,056.78	804.47
Jun/2007	13,906.57	799.7
Jul/2007	13,868.63	799.42
Aug/2007	13,660.48	793.37
Sep/2007	14,098.89	817.39
Oct/2007	14,625.00	848.82
Nov/2007	13,689.12	798.5
Dec/2007	13,833.06	808.53
Jan/2008	13,155.10	772.56
Feb/2008	13,582.69	795.23
Mar/2008	13,350.13	783.44
Apr/2008	13,937.04	825.91
May/2008	14,714.73	878.42
Jun/2008	14,467.03	863.19
Jul/2008	13,592.91	811.73
Aug/2008	13,771.25	821.69
Sep/2008	11,752.90	707.34
Oct/2008	9,762.76	591.28
Nov/2008	9,270.62	563.09
Dec/2008	8,987.70	541.82
Jan/2009	8,694.90	523.28
Feb/2009	8,123.02	489.56
Mar/2009	8,720.39	528.68
Apr/2009	9,324.83	565.38
May/2009	10,370.07	632.47
Jun/2009	10,374.91	630.06
Jul/2009	10,787.15	654.56
Aug/2009	10,868.21	652.78
Sep/2009	11,394.96	680.75
Oct/2009	10,910.75	647.72
Nov/2009	11,447.20	680.26
Dec/2009	11,746.11	693.23
Jan/2010	11,094.31	648.53
Feb/2010	11,629.63	680.76
Mar/2010	12,037.73	706.81
Apr/2010	12,210.70	716.05
May/2010	11,762.99	691.63
Jun/2010	11,294.42	662.05
Jul/2010	11,713.43	685.03
Aug/2010	11,913.86	694.05
Sep/2010	12,368.65	715.07
Oct/2010	12,676.24	728.09
Nov/2010	12,952.88	741.34
Dec/2010	13,443.22	768.65
Jan/2011	13,551.99	778.65
Feb/2011	14,136.50	813.29
Mar/2011	14,116.10	810.86
Apr/2011	13,944.79	797.9
May/2011	13,802.88	789.12
Jun/2011	13,300.87	763.9
Jul/2011	12,945.63	733.3
Aug/2011	12,768.70	728.2
Sep/2011	11,623.84	667.08
Oct/2011	12,252.06	698.04
Nov/2011	12,204.11	695.49
Dec/2011	11,955.09	680.87
Jan/2012	12,452.15	709.18
Feb/2012	12,644.01	718.86
Mar/2012	12,392.18	706.96
Apr/2012	12,292.69	699.79
May/2012	11,513.21	656.5
Jun/2012	11,596.56	663.62
Jul/2012	11,664.71	665.46
Aug/2012	11,949.26	683.47
Sep/2012	12,317.46	702.87
Oct/2012	12,422.91	711.58
Nov/2012	12,239.36	702.59
Dec/2012	12,433.53	713.72
Jan/2013	12,685.24	727.76
Feb/2013	12,821.83	738.55
Mar/2013	12,749.90	731.34
Apr/2013	12,456.50	710.71
May/2013	12,650.42	726.27
Jun/2013	12,129.11	695.52
Jul/2013	12,486.64	714.68
Aug/2013	12,653.90	727.13
Sep/2013	12,787.20	732.89
Oct/2013	13,361.26	767.47
Nov/2013	13,395.40	771.86
Dec/2013	13,621.55	783.75
Jan/2014	13,694.94	785.53
Feb/2014	14,209.59	813.25
Mar/2014	14,335.31	820.51
Apr/2014	14,651.87	837.58
May/2014	14,604.16	836.6
Jun/2014	15,146.01	866.04
Jul/2014	15,330.74	884.33
Aug/2014	15,625.73	898.26
Sep/2014	14,960.51	864.24
Oct/2014	14,613.32	849.5
Nov/2014	14,744.70	863.04
Dec/2014	14,632.44	854.85
Jan/2015	14,673.48	857.34
Feb/2015	15,234.34	890.4
Mar/2015	14,902.44	869.28
Apr/2015	15,224.52	886.56
May/2015	15,014.09	875.04
Jun/2015	14,553.33	847.78
Jul/2015	14,468.44	853.4
Aug/2015	13,859.12	815.45
Sep/2015	13,306.96	784.51
Oct/2015	13,529.17	794.49
Nov/2015	13,469.83	791.8
Dec/2015	13,009.95	764.54
Jan/2016	12,822.13	754.85
Feb/2016	12,860.35	755.27
Mar/2016	13,494.36	790.93
Apr/2016	13,951.45	815.46
May/2016	14,065.78	821.06
Jun/2016	14,064.54	817.65
Jul/2016	14,582.74	847.4
Aug/2016	14,597.95	851.38
Sep/2016	14,725.86	858.47
Oct/2016	14,787.27	868.38
Nov/2016	15,082.85	888.3
Dec/2016	15,287.59	900.05
Jan/2017	15,385.96	909.19
Feb/2017	15,399.24	907.57
Mar/2017	15,547.75	915.58
Apr/2017	15,586.13	918.9
May/2017	15,349.91	906.38
Jun/2017	15,182.19	892.65
Jul/2017	15,143.87	891.19
Aug/2017	15,211.87	892.56
Sep/2017	15,634.94	921.79
Oct/2017	16,025.59	947.17
Nov/2017	16,067.48	952.04
Dec/2017	16,209.13	959.69
Jan/2018	15,951.67	944.41
Feb/2018	15,442.68	913.9
Mar/2018	15,367.29	908.99
Apr/2018	15,607.88	921.43
May/2018	16,061.50	950.45
Jun/2018	16,277.73	965.32
Jul/2018	16,434.01	979.38
Aug/2018	16,262.88	965.73
Sep/2018	16,073.14	952.28
Oct/2018	15,027.28	895.08
Nov/2018	15,197.82	913.29
Dec/2018	14,322.86	859.32
Jan/2019	15,540.60	929.25
Feb/2019	15,999.01	953.91
Mar/2019	16,102.09	959.5
Apr/2019	16,580.73	994.53
May/2019	16,037.49	961.89
Jun/2019	16,382.20	979.6
Jul/2019	16,406.56	979.73
Aug/2019	16,442.07	982.45
Sep/2019	16,658.63	997.93
Oct/2019	16,483.16	986.33
Nov/2019	17,040.20	1,018.62
Dec/2019	17,063.43	1,014.92
Jan/2020	17,318.49	1,032.97
Feb/2020	16,263.05	972.15
Mar/2020	13,378.75	819.89
Apr/2020	14,780.74	891.63
May/2020	15,192.83	917.17
Jun/2020	15,515.22	934.21
Jul/2020	16,169.20	968.67
Aug/2020	16,514.44	990.52
Sep/2020	16,121.38	967.27
Oct/2020	15,580.64	928.9
Nov/2020	17,190.25	1,023.52
Dec/2020	17,433.36	1,034.76
Jan/2021	17,337.02	1,026.60
Feb/2021	18,060.26	1,073.42
Mar/2021	18,700.67	1,117.15
Apr/2021	19,108.33	1,138.85
May/2021	19,730.99	1,180.14
Jun/2021	20,165.58	1,209.15
Jul/2021	20,287.80	1,216.15
Aug/2021	20,582.94	1,231.33
Sep/2021	20,070.25	1,203.34
Oct/2021	21,037.07	1,265.19
Nov/2021	20,659.99	1,248.56
Dec/2021	21,222.84	1,286.86
Jan/2022	21,098.29	1,281.96
Feb/2022	21,126.36	1,278.42
Mar/2022	21,890.16	1,322.67
Apr/2022	20,762.00	1,255.54
May/2022	20,729.34	1,254.79
Jun/2022	18,861.36	1,146.43
Jul/2022	19,692.92	1,187.97