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Following Is a Time Series Graph for Monthly Closing Price

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Following is a time series graph for monthly closing price for the Dow Jones
Industrial Average (beginning March 2003). 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.
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:

Confounding

A situation in statistical analysis where the effect of one variable on another is distorted by a third variable.

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