Chapter 3 Case Study (Continued). Use the following information for Exercises 65–68. Shown here is the regression equation for the linear relationship between the randomly selected Darts portfolio and the Dow Jones Industrial Average (DJIA), from the Chapter 3 Case Study. (Note: This is for the entire data set, not the small sample taken in the Exercise 39 data set.)

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Question 4.165

67. Estimate the increase or decrease in the net price of the Darts portfolio, using a sentence, for the following situations:

  1. Suppose that for Contest A the DJIA increased by 10% more than for Contest B.
  2. Suppose that for Contest C the DJIA decreased by 5% more than for Contest D.

4.2.67

(a) The percent change in the stocks selected by the Darts for Contest A is 1.032 (10) = 10.32% more than the percent change in the stocks selected by the Darts for Contest B. (b) The percent change in the stocks selected by the Darts for Contest C is 1.032 (5) = 5.16% less than the percent change in the stocks selected by the Darts for Contest D.