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Listed below is the selling price for a share of Oracle Inc. stock at the close of the year. Pot the data b. Determine the least squares trend...

Listed below is the selling price for a share of Oracle Inc. stock at the close of the year.

a. Pot the data

b. Determine the least squares trend equation. Use boh the actual stock price and the logarithm of the price. Which seems to yield a ore accurate forecast? (look at the R-squared value)

c. Estimate the selling price in 2012. Does this seem like a reasonable estimate based on the historical data?

By how much has the stock price increased or decreased (per year) on aberage durning the period? Use your best answer from part (b).


Year Code Price 1990 1 0.1994 -0.70027 1991 2 0.3580 -0.44612 1992 ` 0.7006 -0.15453 1993 4 1.4197 0.152197 1994 5 2.1790 0.338257 1995 6 3.1389 0.496777 1996 7 4.6388 0.666406 1997 8 3.7188 0.570403 1998 9 7.1875 0.856578 1999 10 28.0156 1.4474 2000 11 29.0625 1.463333 2001 12 13.8100 1.140194 2002 13 10.8000 1.033424 2003 14 13.2300 1.12156 2004 15 13.7200 1.137354 2005 16 12.2100 1.086716 2006 17 19.1100 1.281261 2007 18 20.2300 1.305996 2008 19 17.7300 1.248709 2009 20 24.5300 1.389698

Top Answer

a. Plot the data Increasing trend. b. Least squares trend equation: Using actual stock price: R 2 = 0.571 Equation: y =... View the full answer

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