Following Is a Time Series Graph for Monthly Closing Price

question 18

Multiple Choice

Following is a time series graph for monthly closing price for the Dow Jones Industrial Average (beginning March 2003) . Which of the following statements is true?

• A) A histogram would provide a good representation of these data.
• B) The data show an upward trend since late 2008.
• C) The data show a 50% drop in the Dow Jones Average by the end of 2008.
• D) Both A and C.
• E) Both B and C.

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Definitions:

Validity

The extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.

Debrief

The process of providing a detailed and explanatory feedback or information following a task, experiment, or event.

Psychological Information

Data related to the mental processes, behaviors, and emotional state of an individual.

Causal Conclusions

Judgments about the existence or strength of a cause-and-effect relationship between two variables.