Question
The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) indexes are used as measures of overall movement in the stock
The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the price movements of 30 large companies; the S&P 500 is an index composed of 500 stocks. Some say the S&P 500 is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the S&P 500 for 15 weeks, beginning with January 6, 2012, follow (Barron's website, April 17, 2012).
Date | DJIA | S&P 500 |
6-Jan | 12360 | 1278 |
13-Jan | 12422 | 1289 |
20-Jan | 12740 | 1315 |
27-Jan | 12660 | 1316 |
3-Feb | 12862 | 1343 |
10-Feb | 12801 | 1345 |
17-Feb | 12960 | 1362 |
24-Feb | 12983 | 1366 |
2-Mar | 12978 | 1370 |
9-Mar | 12922 | 1371 |
16-Mar | 13233 | 1402 |
23-Mar | 13081 | 1397 |
30-Mar | 13212 | 1408 |
5-Apr | 13050 | 1395 |
13-Apr | 12860 | 1370 |
Use the data to develop an estimated regression equation showing how DJIA is related to S&P 500. Let x represent the S&P 500 indexes. Estimate predicted DJIA for 20-Apr using the regression model.
Date | DJIA | S&P 500 |
20-Apr | 12912 | 1365 |
Group of answer choices
13116
12965
12934
12670
12517
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