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Question 5 The Dow Jones Industrial Average (DJIA) and the Standard t Poor= s 500 {315:}: i) indexes are used as measures of overall movement

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Question 5 The Dow Jones Industrial Average (DJIA) and the Standard t Poor= s 500 {315:}: i) indexes are used as measures of overall movement in the stock market. The DNA is based on the price movements of 30 large companies; the 33:13 EGG is an index composed of 500' stocks. Some say the S&P i is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the 3.35:? 500 for 15 weeks= beginning with Januaij,F 6, 21312, is stored in the data set DJMStEPS (Barrone website= April 1?. 2D 12). a) Develop a scatter diagram with DJTA as the independent variable. b) Develop the estimated regression equation. c) Test for a signicant relationship. Use ! = (LIBS. :1) Did the estimated regression equation provide a good t?l Explain. e) Suppose that the closing price for DNA is 13.5%. Predict the closing price for the SEEP SUD.

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