MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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The Dow Jones Industrial Average (DJIA) and the Standard & Poors 500 (S&P500) 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 is a better measure of stock market performance because it is broader based. The closing prices for the DJIA and S&P500 for 20 weeks starting on 9/9/2005 are included in cells E1 to G21. The DJIA data is in cells F1 to F21 and the data for S&P 500 is in cells G1 to G21. Both data sets have labels in first row. | ||
Develop the estimated regression equation using DJIA as the independent variable. Place output in cell H1 | ||
Is the relationship between DJIA and S&P500 significant using alpha .05? | ||
Did the estimated regression equation provide a good fit? (explain) | ||
Suppose that the closing price for DJIA is 11,000. Estimate the closing price for the S&P500 | ||
Date | DJIA | S&P500 |
9-Sep | 10679 | 1241 |
16-Sep | 10642 | 1238 |
23-Sep | 10420 | 1215 |
30-Sep | 10569 | 1229 |
7-Oct | 10292 | 1196 |
14-Oct | 10287 | 1187 |
21-Oct | 10215 | 1180 |
28-Oct | 10403 | 1198 |
4-Nov | 10531 | 1220 |
11-Nov | 10686 | 1235 |
18-Nov | 10766 | 1248 |
25-Nov | 10932 | 1268 |
2-Dec | 10878 | 1265 |
9-Dec | 10779 | 1259 |
16-Dec | 10876 | 1267 |
23-Dec | 10883 | 1269 |
30-Dec | 10718 | 1248 |
6-Jan | 10959 | 1285 |
13-Jan | 10960 | 1288 |
20-Jan | 10667 | 1261 |
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