# Interpretation Of Financial Data To Make Predictions

Question

Can you predict the price of your favorite stock shares based on a market index value? For a stock that has at least five years of history, develop a regression equation to predict its value if the index of your choice goes up by and if it goes down by 15% from its value on the day you do this problem.  (For example if you choose the S&P 500 as the index and the value today is 1,200 points, then predict your stock's price when the index is at 1,380 and 1,020).  Use monthly closing figures for the last five years for both your stock and index choice.

Requirements:

·    Develop a prediction equation
·    Comment on the usefulness of the equation to make predictions (SEE, No Image, F-test, and slope coefficient significance)
·    Interpret the slope coefficient
·    Make the two predictions as indicated in the problem (whether or not you conclude the equation is useful for predictions)
·    Identify the 95% prediction interval

Summary

The question belongs to Statistics and it is about developing predicting an equation and to comment on the usefulness of the equation to make predictions. The solution has data interpreted and predictions made in detail.

Total Word Count 520

• Rasha

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• joeanne

• joeanne

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• Monik

• Cristina

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• Janete

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• Sandeep

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• Oxana

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• Paul Brandon-Fritzius

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• tina Johnson

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• Giuseppe

works fine.