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Regression Analysis to Stock Price

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See attached data file.

Use simple regression to determine the extent to which your stock's closing price can be determined from the closing value of the DJIA. As before, you should include a copy of the data you've collected to date. In your SLP upload, include a screen shot of your Excel output.

SLP Assignment Expectations:

In general, SLPs are expected to have the attributes of precision, clarity, breadth, depth, and applicability. However, not all of these attributes are applicable to all SLPs, especially in math and science courses. For this SLP, the expectations are:

Accurately state the null and alternative hypotheses for this test

Submit data in Excel format, with proper labels and headings

Correctly stimate a simple regression model using these data

Discuss the meaning of the regression results for these data

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Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.

Solution Preview

Please see the attached files.

Simple regression to determine the extent to which your stock's closing price can be determined from the closing value of the DJIA.

Null and alternative hypotheses

H0: There is no linear relationship between closing price of NYSE and the closing value of the DJIA.

H1: There is linear relationship between closing price of NYSE and the closing value of the DJIA.

Scatter diagram ...

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