Computer Lab 4a

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Miami University *

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125

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Computer Science

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Dec 6, 2023

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docx

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2

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Computer Lab 4a The JMP file attached to this assignment shows the daily closing price for the S&P 500, the NASDAQ, Gold, and Silver. For your analysis you are to use Gold as the dependent (response) variable. 1. Use Graph: Scatterplot Matrix to create three scatter plots using SP500, NASDAQ, and Silver as the independent variables. Paste this plot here: 2. Describe the relationship you see in each plot. Strength – the silver one is the strongest because its value is closet to one, which means that the individual plots tend to be very close to each other. The Nasdaq and SP500 are moderate strength because they are relatively close, but not too close to each other. Form – the silver has the strongest form again because the points are the tightest on this graph. The other two have a little bit of a weaker form because they are further apart from each other again. Direction – the Silver has a positive direction, going upwards. The direction of the others is negative and downward sloping. 3. Which is the strongest linear relationship? The strongest linear relationship would be silver because they are the plots are the closet together out of all three of the scatterplots.
4. Below are the correlation coefficients between Gold and the three independent variables. Explain why the values of these coefficients are consistent with the scatter plots. These are consistent with the scatterplots because gold is the dependent variable and is a solid 1. Silver has the strongest linear relationship making the value the closet to 1. The others are both negative because the lines are downward sloping and they are further from one because they are further apart form each other
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