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Develop a regression model to predict the price of stock

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Reference no: EM13243270

The closing stock price for each of two stocks was recorded over a 12-month period. The closing price for the Dow Jones Industrial Average (DJIA) was also recorded over this same time period. These values are shown in the following table:

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(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.

(c) Which of the two stocks is most highly correlated to the Dow Jones Industrial Average over this timeperiod?

Reference no: EM13243270

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