SCENARIO 3-11
Given below are the closing prices for the Dow Jones Industrial Average (DJIA)and the Standard & Poor's (S&P)500 Index over 10-weeks sometime in the past.

-Referring to Scenario 3-11,how will you classify the linear relationship between the DJIA and the S&P 500 index?
A)Weak
B)Moderate
C)Strong
D)No relationship

Question

SCENARIO 3-11
Given below are the closing prices for the Dow Jones Industrial Average (DJIA)and the Standard & Poor's (S&P)500 Index over 10-weeks sometime in the past.
 
-Referring to Scenario 3-11,how will you classify the linear relationship between the DJIA and the S&P 500 index?
A)Weak 
B)Moderate 
C)Strong 
D)No relationship

Quizplus · Accepted Answer

The scatter plot shows a clear positive linear relationship between the DJIA and the S&P 500 index, with most data points clustering closely around the line of best fit. Therefore, the relationship can be classified as strong.