Dow jones industrial average

Assignment Help Basic Statistics

Reference no: EM13108601

The data in below represent the closing value of the Dow Jones Industrial Average (DJIA) over the 29 year period from 1979 through 2007.

Year Coded Year DJIA

1979 0 838.7

1980 1 964.0

1981 2 875.0

1982 3 1046.5

1983 4 1258.6

1984 5 1211.6

1985 6 1546.7

1986 7 1896.0

1987 8 1938.8

1988 9 2168.6

1989 10 2753.2

1990 11 2633.7

1991 12 3168.8

1992 13 3301.1

1993 14 3754.1

1994 15 3834.4

1995 16 5117.1

1996 17 6448.3

1997 18 7908.3

1998 19 9181.4

1999 20 11497.1

2000 21 10788.0

2001 22 10021.5

2002 23 8341.6

2003 24 10453.9

2004 25 10788.0

2005 26 10717.5

2006 27 12463.2

2007 28 13264.8

1. When fitting a third order autoregressive model to the DJIA, what is the parameter estimate a3 for A3?

a) 0.0863

b) 0.0076

c) 0.0017

2. When testing for the significance of the third order autoregressive parameter with ? = 0.05, can A3 be deleted?

a) Yes

b) No

c) Inconclusive

3. If necessary, when fitting a second order autoregressive model to the DJIA, what is the parameter estimate a2 for A2?

a) 0.2034

b) 0.0886

c) 0.0863

4. When testing for the significance of the second?order autoregressive parameter with ? = 0.05, can A2 be deleted?

a) Yes

b) No

c) Inconclusive

5. If necessary, when fitting a first order autoregressive model to the DJIA, what is the parameter estimate a1 for A1?

a) 1.0213

b) 1.1018

c) 1.0959

6. When testing for the significance of the first order autoregressive parameter with ? = 0.05, can A1 be deleted?

a) Yes

b) No

c) Inconclusive

7. Forecast the DJIA for 2008 using the most appropriate model considered in 1) through 6).

a) 11040.1273

b) 13856.9935

c) 13879.4358

Reference no: EM13108601

Questions Cloud

Determine mean-median and range for data sets : Determine the mean, median, and range for each of two data sets. b. Determine standard deviation using rule of thumb for each of data sets.

Illustrate what do you think are avon prospects in india : Illustrate what do you think are Avon prospects in India, given that the capita spending on beauty there is only $1, compared to among $100 and $200 in developed markets?

Find difference between reptile and amphibian heart : How is the circulatory system of reptiles characterized? What is the basic difference between the reptile and the amphibian heart?

Was there a regulatory issue with the proposed merger aol : Was there a regulatory issue with the proposed merger of AOL Time Warner? Illustrate what was it? Examine the potential problem that you see. Illustrate what agency would be responsible for it?

Dow jones industrial average : The data in below represent the closing value of the Dow Jones Industrial Average (DJIA) over the 29 year period from 1979 through 2007.

How an organization use different component of marketing mix : Select an organization with which you are familiar. How does your selected organization use the different components of the marketing mix?

Illustrate what is the price level : Illustrate what is the price level? Illustrate what is the velocity of money? Assume that velocity is constant and the economy's output of goods and services rises by 5 percent each year. Illustrate what will happen to nominal GDP and the price lev..

Provide the organism with pathogenic abilities : How does an organism with a capsule such as K. pneumoniae, provide the organism with pathogenic abilities to avoid destruction by the host cell?

Can industry would not benefit from the promise : Consider the subsequent opinion shared by some people: database management systems and data-warehousing techniques are the greatest threat to individual privacy in modern times. Illustrate what is your opinion?

User Account

All Pages