Question

Create a scatter plot for these 2 variables. comment on whether you believe there is a relationship between percent changes in market indices and percent changes in interesr rates. if you see a relationship, is it a positive or a negative one? as the change in interest rates increases, do you believe the change in stock market indices increases or decreases?

Chart 1 TBC % % Chang Chang eine in Market Interest 1 Indices Rates 28.19 6.41 3 33.09 35.15 15.24 47.62 33.81 50.25 35.00 51.72 7 62.03 35.40 8 31.24 46.54 9 2.03 1100.00 10 32.97 30.24 11 39.13 -21.85 12 29.78 51.98 13 41.46 44.61 46.26 48.86 15 43.43 1.74 16 27.65 91.55 17 6.00 77.10 18 27.90 2.20 19 13.49 49.84

Answer 1

Comment -

scatter plot t 600 interest rates 20 50 market indices

There is relationship between percent changes in market indices and percent changes in interesr rates. But the relationship is negative as correlation coefficient is - 0.5179. And trend is downwards .

As the change in interest rates increases, we believe that change in stock market indices decreases.( r = -0.5179 ) PL??