Dow Jones 2012 The Dow Jones stock index measures the performance of the stocks of America’s largest companies (finance.yahoo.com). A regression of the Dow prices on years 1972–2012 looks like this:...

Dow Jones 2012 The Dow Jones stock index measures the performance of the stocks of America’s largest companies (finance.yahoo.com). A regression of the Dow prices on years 1972–2012 looks like this:

a) What is the correlation between Dow Index and Year?

 b) Write the regression equation.

 c) Explain in this context what the equation says. d) Here’s a scatterplot of the residuals. Which assumption(s) of the regression analysis appear to be violated?