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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
The stock market Some people think that the behavior of the stock market in January predicts its behavior for the rest of the year. Take the explanatory variable x to be the percent change in a stock market index in January and the response variable y to be the change in the index for the entire year. We expect a positive correlation between x and y because the change during January contributes to the full year’s change. Calculation from data for an 18-year period gives
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(a) Find the equation of the least-squares line for predicting full-year change from January change. Show your work.
(b) Suppose that the percent change in a particular January was 2 standard deviations above average. Predict the percent change for the entire year, without using the least-squares line. Show your work.
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