Stock Market Performance The Dow Jones Industrial Average (DJIA) and the Standard & Poor’s 500: Contemporary Research in Business Analytics Report, Ireland

Assessment tasks

The work of report will help in understanding application of various analytical techniques. There are total of three tasks; you are expected to answer all the questions of the tasks. Task 1 is application of descriptive data. The task 2 will practically be an application and understanding of Regression and Classification Technique.

Task 3 is a Data Mining Report. The maximum permitted word count for all the tasks is 2000 words. A guided word count for each task is provided. Any excess will not be taken into account in grading.

Task 1 

For the sample data set, given below, perform basic-level descriptive analysis and interpret the results.

1. Analyze the data set using the “Descriptive Statistics” tab in Excel
2. Interpret the measures of Mean, Median, Mode, Standard Deviation, Variance, Skewness and Kurtosis

Task 2

Stock Market Performance

The Dow Jones Industrial Average (DJIA) and the Standard & Poor’s 500 (S&P 500) indexes are used as measures of overall movement in the stock market. The DJIA is based on the price movements of 30 large companies; the S&P 500 is an index composed of 500 stocks. Some say the S&P 500 is a better measure of stock market performance because it is broader based. The closing price for the DJIA and the S&P 500 for 15 weeks of a previous year follow (Barron’s web site).

1. Develop a scatter chart for these data with DJIA as the independent variable. What does the scatter chart indicate about the relationship between DJIA and S&P 500?
2. Develop an estimated regression equation showing how S&P 500 is related to DJIA. What is the estimated regression model?
3. What is the 95% confidence interval for the regression parameter b1? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter b1 is equal to zero?
4. What is the 95% confidence interval for the regression parameter B0? Based on this interval, what conclusion can you make about the hypotheses that the regression parameter b0 is equal to zero?
5. How much of the variation in the sample values of S&P 500 does the model estimated in part (b) explain?
6. Suppose that the closing price for the DJIA is 13,500. Estimate the closing price for the S&P 500.
7. Should we be concerned that the DJIA value of 13,500 used to predict the S&P 500 value in part (f) is beyond the range of the DJIA used to develop the estimated regression equation?

Task 3

Here is an excerpt from the article named: “Facebook changes name to Meta as it refocuses on virtual reality”

“Facebook Inc (FB.O) is now called Meta, the company said on Thursday, in a rebrand that focuses on building the “metaverse,” a shared virtual environment that it bets will be the successor to the mobile internet.

The name change comes as the world’s largest social media company battles criticisms from lawmakers and regulators over its market power, algorithmic decisions and the policing of abuses on its services.”

Read the full article here:

You are required to discuss data mining techniques and challenges under the context of Facebook’s transition to Meta.

1. Explore the concepts of data mining under the given context (FB to META transition). Identify and evaluate at least two data mining techniques that suit the transition
2. Critically discuss the challenges faced in a typical data mining process considering the above context in your response