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
Chapter1: Making Economics Decisions
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![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.
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
32.4
31.7
31.9
36.6
36.7
38.7
39.5
41.2
43.3
39.4
40.1
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
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
42.1
45.2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff13f9663-b8f7-41d1-9b24-b69acf24efac%2Ff97c5e16-3d99-435f-aab3-39b024c5af84%2Fzmlmja8_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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
32.4
31.7
31.9
36.6
36.7
38.7
39.5
41.2
43.3
39.4
40.1
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
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
42.1
45.2
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