Industrial Index

In this project we are going to compute the rate of growth in the Industrial Index of the New York Stock Exchange (NYSE). The table below gives the highest close of the industrial 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 industrial 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 industrial index for next year and for the year 1966.

In your opinion, which rate provides the best estimate of the highest close of the industrial index in 1966? Which rate provides the best estimate of the highest close of the industrial index for next year? Provide reasons that might account for differences in these calculations.

Year

Industrial

Year

Industrial

1974

58.22

1986

165.86

1975

56.45

1987

231.06

1976

63.36

1988

192.81

1977

63.09

1989

237.76

1978

66.43

1990

252.24

1979

71.40

1991

285.82

1980

96.16

1992

298.18

1981

92.78

1993

316.95

1982

93.93

1994

327.93

1983

116.15

1995

417.46

1984

113.78

1996

503.23

1985

139.90

1997

638.24

NYSE Industrial Index

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