Finance Index
In this project we are going to compute the rate of growth in the Finance Index of the New York
Stock Exchange (NYSE). The table below gives the highest close of the finance index for the NYSE for each year. Find the rate of increase from 1974 to 1978 and use this rate to predict the highest close of the finance index for next year and for the year 1966.
Now find the rate of increase from 1993 to 1997 and use this rate to predict the highest close of the finance index for next year and for the year 1966.
In your opinion, which rate provides the best estimate of the highest close of the finance index in 1966? Which rate provides the best estimate of the highest close of the finance index for next year? Provide reasons that might account for differences in these calculations.
|
Year |
Finance |
Year |
Finance |
|
1974 |
65.87 |
1986 |
157.48 |
|
1975 |
54.11 |
1987 |
164.79 |
|
1976 |
59.23 |
1988 |
136.16 |
|
1977 |
58.99 |
1989 |
173.29 |
|
1978 |
65.24 |
1990 |
145.95 |
|
1979 |
67.43 |
1991 |
172.68 |
|
1980 |
67.46 |
1992 |
198.16 |
|
1981 |
73.22 |
1993 |
217.49 |
|
1982 |
90.81 |
1994 |
224.07 |
|
1983 |
102.17 |
1995 |
274.21 |
|
1984 |
97.63 |
1996 |
356.96 |
|
1985 |
132.35 |
1997 |
499.74 |
NYSE Finance Index
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