Reference no: EM133184269
Follow the instructions provided on using Excel to a regression equation. Find the historical data of a company of your choice from yahoo or any financial website of your choice and complete the following:
Pull the historical data for your favorite company at Yahoo or any website for the period Nov 2020 to Oct 2021, monthly closing stock prices.
1. Find the slope (a) and intercept (b)
2. Create the linear regression (equation)
3. Predict the stock price at close of June 2022.
Submit your assignment on Excel with the historical data in the following columns and be sure to include the name of the company whose stock price you are predicting, and the website link where you retrieved the historical data. Be sure item 1 to 3 are clearly outlined and included on your submission.
Column 1 = Date | Column 2 = Open $ | Column 3 = Low $ | Column 4 = Close $(y) | Column 5 = Month(x)
Instructions on how to pull historical data from Yahoo Finance (https://finance.yahoo.com/) and compute future price based on trending using regression analysis.
Read chapter 13.6 and 13.7 for more on using Regression Analysis to make predictions and using excel to.
Steps:
1. Go to Yahoo Finance on the web
2. Enter a company name or stock symbol into the "Quote lookup" field
3. Tap a quote in the search results to view it
4. Slide the menu to the left and tap Historical Data
5. Select a Time Period, data to show, and frequency
6. Tap Apply
7. You can download the data to Excel and do the regression analysis using the linear equation
8. Find the Slope (Explain its meaning and significance)
9. Find the y-intercept ((Explain its meaning and significance)
10. Using the linear regression equation y=m + bx (remember a = m = slope)
11. Substitute a period for 'X' into the equation to predict the price.
The assignment has 5 parts, namely
1. Creating the table
2. Finding the slope (Explain its meaning and significance)
3. Finding the Y-intercept (Explain its meaning and significance)
4. Writing the equation
5. Forecasting the price of the stock for a given period