164 Indians CHAPTER 4 REGRESSION MODELS 9 (a) Develop a regression model to predict the price of stock 1 based on the Dow Jones Industrial Average. (b) Develop a regression model to predict the price of stock 2 based on the Dow Jones Industrial Average. KID 4-32 The closing stock price for each of two stocks was recorded over a 12-month period. The clos- ing price for the Dow Jones Industrial Average (DJIA) was also recorded over this same time pe- riod. These values are shown in the following table: STOCK 1 STOCK 2 48.5 48.2 44.5 44.7 49.3 49.3 46.1 46.2 47.7 48.3 47.0 47.9 47.8 MONTH 1 2 3 4 5 6 7 8 9 10 11 12 13 DJIA 11,168 11,150 11,186 11,381 11,679 12,081 12,222 12,463 12,622 12,269 12,354 13,063 13,326 32.4 31.7 31.9 36.6 36.7 38.7 39.5 41.2 43.3 39.4 40.1 42.1 45.2

164 Indians CHAPTER 4 REGRESSION MODELS 9 (a) Develop a regression model to predict the price of stock 1 based on the Dow Jones Industrial Average. (b) Develop a regression model to predict the price of stock 2 based on the Dow Jones Industrial Average. KID 4-32 The closing stock price for each of two stocks was recorded over a 12-month period. The clos- ing price for the Dow Jones Industrial Average (DJIA) was also recorded over this same time pe- riod. These values are shown in the following table: STOCK 1 STOCK 2 48.5 48.2 44.5 44.7 49.3 49.3 46.1 46.2 47.7 48.3 47.0 47.9 47.8 MONTH 1 2 3 4 5 6 7 8 9 10 11 12 13 DJIA 11,168 11,150 11,186 11,381 11,679 12,081 12,222 12,463 12,622 12,269 12,354 13,063 13,326 32.4 31.7 31.9 36.6 36.7 38.7 39.5 41.2 43.3 39.4 40.1 42.1 45.2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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