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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. Suppose the closing price for the DJIA and the S&P 500 for 144 days in a certain year are as provided in the file closingprices3.xlsx. (a) Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and S&P 500? The scatter chart indicates there may be a positive linear relationship between DJIA and S&P 500. The scatter chart indicates there may be no noticeable linear relationship between DJIA and S&P 500. The scatter chart indicates there may be a negative linear relationship between DJIA and S&P 500. (b) Develop an estimated linear regression equation showing how S&P 500 (y) is related to DJIA (x). What is the estimated linear regression model? (Round your numerical values to four decimal places.) ŷ=b0+b1 x (c) What is the 95% confidence interval for the parameter ₁? (Round your answers to three decimal places.) 0 to 95 Based on this interval, what conclusion can you make about the hypotheses that the parameter ₁ is equal to zero? (Make your conclusion regardless of any validity concerns.) Because this interval does include zero, we reject the hypothesis that ₁ = 0. (d) What is the 95% confidence interval for the parameter Bo? (Round your answers to three decimal places.) to

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. Suppose the closing price for the DJIA and the S&P 500 for 144 days in a certain year are as provided in the file closingprices3.xlsx. (a) Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and S&P 500? The scatter chart indicates there may be a positive linear relationship between DJIA and S&P 500. The scatter chart indicates there may be no noticeable linear relationship between DJIA and S&P 500. The scatter chart indicates there may be a negative linear relationship between DJIA and S&P 500. (b) Develop an estimated linear regression equation showing how S&P 500 (y) is related to DJIA (x). What is the estimated linear regression model? (Round your numerical values to four decimal places.) ŷ=b0+b1 x (c) What is the 95% confidence interval for the parameter ₁? (Round your answers to three decimal places.) 0 to 95 Based on this interval, what conclusion can you make about the hypotheses that the parameter ₁ is equal to zero? (Make your conclusion regardless of any validity concerns.) Because this interval does include zero, we reject the hypothesis that ₁ = 0. (d) What is the 95% confidence interval for the parameter Bo? (Round your answers to three decimal places.) to

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.2: Representing Data
Problem 22PFA
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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. Suppose the closing price for the DJIA and the S&P 500 for 144 days in a certain year are as provided in the file closingprices3.xlsx. (a) Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and S&P 500? The scatter chart indicates there may be a positive linear relationship between DJIA and S&P 500. The scatter chart indicates there may be no noticeable linear relationship between DJIA and S&P 500. The scatter chart indicates there may be a negative linear relationship between DJIA and S&P 500. (b) Develop an estimated linear regression equation showing how S&P 500 (y) is related to DJIA (x). What is the estimated linear regression model? (Round your numerical values to four decimal places.) ŷ=b0+b1 x (c) What is the 95% confidence interval for the parameter ₁? (Round your answers to three decimal places.) 0 to 95 Based on this interval, what conclusion can you make about the hypotheses that the parameter ₁ is equal to zero? (Make your conclusion regardless of any validity concerns.) Because this interval does include zero, we reject the hypothesis that ₁ = 0. (d) What is the 95% confidence interval for the parameter Bo? (Round your answers to three decimal places.) to
Transcribed Image Text: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. Suppose the closing price for the DJIA and the S&P 500 for 144 days in a certain year are as provided in the file closingprices3.xlsx. (a) Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and S&P 500? The scatter chart indicates there may be a positive linear relationship between DJIA and S&P 500. The scatter chart indicates there may be no noticeable linear relationship between DJIA and S&P 500. The scatter chart indicates there may be a negative linear relationship between DJIA and S&P 500. (b) Develop an estimated linear regression equation showing how S&P 500 (y) is related to DJIA (x). What is the estimated linear regression model? (Round your numerical values to four decimal places.) ŷ=b0+b1 x (c) What is the 95% confidence interval for the parameter ₁? (Round your answers to three decimal places.) 0 to 95 Based on this interval, what conclusion can you make about the hypotheses that the parameter ₁ is equal to zero? (Make your conclusion regardless of any validity concerns.) Because this interval does include zero, we reject the hypothesis that ₁ = 0. (d) What is the 95% confidence interval for the parameter Bo? (Round your answers to three decimal places.) to
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