- Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 B 1999 4 2000 5 2001 6 2002 -7 2003 18 2004 19 2005 20 2006 21 2007 22 2008 2009 24 2010 25 2011 26 2012 27 28 B DJIA % Return 9.65 31.41 -1.43 15.38 7.51 18.07 5.29 34.17 29.41 20.42 18.89 23.59 -5.68 -6.46 -18.74 25.74 -1.78 -5.56 18.13 6.29 -34.67 21.91 9.83 2.42 9.57 Russell 1000 % Return 16.25 24.95 -6.79 27.48 10.37 11.20 -5.51 37.26 22.33 29.39 26.67 21.83 -6.57 -13.77 -23.72 29.60 5.88 5.78 11.02 4.29 -35.38 27.86 13.09 -5.35 17.36 23 Curcu 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 Open spreadsheet a. Which of the following scatter diagrams accurately represents the data set? Russell 1000 Russell 1000 50 50 40 40 30 30 . . 20 20 . #2 11 10 . . 90 DIA DIA TO 20 10 40 SO -20 --50 -10 - 30 -40 LO 40 30 50 20 --50-10-30-20-10 . -10 . -10 . -20 --20 -30 -30 . 40 40 Russell 1000 Russell 1000 SO 8 50 40 40 . 30 . 30 20 20- 3 13 10 . . 10 . DIA DJIA 10 20 10 40 50 -20 -10 20 -50 40 -30 . 10 40 50 30 -50-10-30 . - 2010 -10 -10 . -20 20 --30 -30 . 40 40 -50 le mean and standard deviation for each index (to 2 decimals) Scatter diagram Scatter diagram 2 Scatter dig Scatter diagram DJIA mean standard deviation Russell 1000 c. Compute the sample correlation coefficient for these data (to 3 decimals) b. 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 slight han that of the DJIA. larger smaller