MULTIPLE REGRESSION

QSO 510 Summer 2013

QSO 510 Summer 2013 Homework #5 Page 2

Names:

Multiple regression

General Guidelines

1. The questions and all the required data are included in this template.

2. Word-process your case assignment within this template. Do not create a new file.

3. Use Equation Editor (Insert/ Object/ Microsoft Equation) to word-process the formulas, if required for the case.

4. Use Excel for graphs and the drawing tool in Word for diagrams, if required for the case.

5. Create a single Word document by pasting all your Excel work into this Word document.

6. Use the rules of rounding correctly at all steps including the final answers. Note: 0.12344 is rounded to 0.1234 and 0.12345 is rounded to 0.1235.

7. Do minimum rounding at intermediate steps (use at least four significant digits). Round off the final answers appropriately. Note: 0.0042 is only two significant digits as leading zeros are not considered significant. 0.4200 is four significant digits as trailing zeros are considered significant.

8. You may exchange ideas with other groups but please do not give your report/computer files to any other group or use the reports/computer work done by other groups in writing your own report.

Question #2:

Find weekly historical closing price data from January 1, 2000 to the present for at least three stocks, commodities or index funds of your choice and use them in a multiple regression model to predict the closing price for a fourth stock of your choice. The document “Getting Stock Price Data” in the Generally Useful Files section of the Course Documents explains how to get this information from Yahoo! Finance. You can also get historical stock data from Google Finance. Kudos for getting the best or worst correlation in the class.