Dow Jones 2012 The Dow Jones stock index measures the performance of the stocks of
Chapter 0, Problem 6(choose chapter or problem)
Dow Jones 2012 The Dow Jones stock index measures the performance of the stocks of Americas largest companies (finance.yahoo.com). A regression of the Dow prices on years 19722012 looks like this: Dependent variable is Dow Index R-squared = 83.9, s = 1659 Variable Coefficient Intercept -667396 Year 337.605 a) What is the correlation between Dow Index and Year? b) Write the regression equation. c) Explain in this context what the equation says. d) Heres a scatterplot of the residuals. Which assumption(s) of the regression analysis appear to be violated?
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