?15 BSC Finding the Best Model. ?Construct a scatterplot and identify the mathematical model that best fits the given data. Assume that the model is to be used only for the scope of the given data, and consider only linear, quadratic, logarithmic, exponential, and power models. Stock Market?Listed below in order by row are the annual high values of the Dow Jones Industrial Average for each year beginning with 1990.?Use only the first 10 values?(for 1990 - 1999) to find the best model and then predict the value for the year 2010. Is the predicted value close to the actual yalue of 11,655? 1 3 3 3 3 3 5 6 8 9 1 0 1 4 7 9 2 5 2 3 , 0 6 1 9 7 1 6 5 7 5 0 9 3 4 8 6 1 9 4 6 8 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 2 4 3 0 , , , , , , , , , , 4 3 6 4 8 9 4 1 3 6 0 5 3 5 5 4 6 9 3 0 1 0 5 4 5 1 4 8 8 6

Solution 15 BSC Step 1 : The data consists of the annual high values of the Dow Jones Industrial Average for each year beginning with 1990. We have to find the best model and prediction value for the year 2010. Before finding the model let us fit the scatter plot to know which model fits the dataset. From the plot we can see that the plotted points fit the quadratic model. By using Excel > choose modeling nonlinear regression > choose dependent and independent variables and define function or choose a inbuilt function variable in functions option of the diagonal box. > OK Step 2 : The chart is The Quadratic model is y = -438.960*x + 124.928*x + 3437.750 Here, y = Values and x = years corresponding to the values.