Question

Use the International Stock Market database from "Excel Databases.xls" on Blackboard. Use Excel to develop a multiple regression model to predict the DJIA by the Nasdaq, the S&P 500, the Nikkei, the Hang Seng, the FTSE 100, and the IPC. Performing a stepwise regression analysis at a 5% level of significance, add the independent variable from Step 2 and continue to perform the stepwise regression analysis until you have reached the best linear model. Which independent variables are in the best linear model? Check all that apply.a. Nasdao
b. S&P 500 c. Nikkei d. Hang Seng e. FTSE 100
f. IPC

Answer 1

Answer: the S&P 500 is the best independent variable for DJIA.

Explanation:

Attached is an image of a document showing the excel sheet arranged orderly.

Note: We will be carrying out linear regression on the US International Stock Market database.

step 1 : We will carryout a stepwise regression analysis at a 5% level of significance, which independent variable is the best single predictor of the DJIA.

step 2 : image showing values and results of the excel summary

Conclusively : from this, we can decide which variable is the best or significant using t stat, the large value of t stat ( modulus of t) decide which independent variable is best for DJIA.

From the image above showing the summary of linear regression, the S&P 500 is the best independent variable for DJIA.

cheers i hope this helps!!