(This first question has to do with the data previously collected on WalMart stocks)

1. Can you predict what the price of your company's stock will do from the DJIA?

. 2. For this case assignment we are going to look at housing starts again but this time we are going to add another variable to the equation.  Read the short article below concerning lumber prices.  Then I would like you to compute the multiple regression formula using the interest rates, lumber prices, and number of housing starts provided below.   Once you have computed your multiple regression formula answer the following questions.

What is the regression formula that you computed?

What would the approximate number of housing starts be at the following interest rates and lumber prices:

9.0% at $1.00 per board foot

8.5% at  $1.50 per board foot

5.5% at $1.25 per board foot

4.5% at $0.90 per board foot

3.7% at $1.00 per board foot

2.3% at $0.75 per board foot.

NOTE:  Use Excel to assist you with the calculations.  Input the above data in an Excel spreadsheet and input your multiple regression formula using the data cells as the variables.  Excel can then automatically compute the results.

If you were the owner of a business in the housing construction sector how would this information affect your decisions?

Price: $12.1

Solution: The downloadable solution consists of 6 pages, 610 words and 1 charts.
Deliverable: Word Document