Following Is a Time Series Graph for Monthly Closing Price

question 4

Essay

Following is a time series graph for monthly closing price for the Dow Jones
Industrial Average (beginning March 2003).
A. Are the closing prices for the Dow Jones Average from October 2004 through
December 2006 fairly stationary? Explain.
b. What was the most volatile period of time for the Dow Jones average? Explain.
c. Would a histogram provide a good summary of these stock prices? Explain.

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Definitions:

Indirect Observations

Observations made through the use of instruments or tools rather than through direct sensory experience.

Replicable

Capable of being repeated or duplicated under similar conditions, allowing for verification of results.

Perfect Objectivity

An ideal state of being unbiased and impartial, free from personal feelings or opinions.

Paradigm Shift

A fundamental change in the basic concepts and experimental practices of a scientific discipline or other professional practice.