Listed below is the selling price for a share of Oracle Inc. stock at the close of

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Listed below is the selling price for a share of Oracle Inc. stock at the close of the year for 1998 through 2015.

Year Year Price Year Year Price Price Price 13.23 13.72 12.21 19.11 20.23 2003 2004 2005 2006 2007 7.1875 28.0156 29.062


a. Plot the data.
b. Determine the least squares trend equation. Use both the actual stock price and the logarithm of the price. Which seems to yield a more accurate forecast?
c. Using the equation with the logarithm of price, calculate the points for the years 2001 and 2006.
d. Using the equation with the logarithm of price, estimate the selling price in 2018. Does this seem like a reasonable estimate based on the historical data?
e. Using the equation with the logarithm of price, how much has the stock price increased or decreased (per year) on average during the period?

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Related Book For  book-img-for-question

Statistical Techniques in Business and Economics

ISBN: 978-1259666360

17th edition

Authors: Douglas A. Lind, William G Marchal

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