Thursday, March 31, 2011

Ch.6 Project : Curve Fitting with Polynomial Models

For my Ch.6 Project, I picked Dell Inc as my stock. First i went to Yahoo Finance and find the historical prices for my stock for the years (1994, 1995, 1996, 1997, 2000, 2001, 2003, 2004). Next, i put the data into my graphing calculator and find the equation. to know which equation best fits the data, you have to try them and see who's R^2 is closer to one and apparently mine was a Quartic Regression. Then i use that polynomial equation to find the values for the year (2002, 2005, 2008, 2010, 2011). and then went back to Yahoo finance and find the actual prices for those years and compared them. Many of my predictions did not match and this is where the researches comes in to tell me why. Lastly, i have to redo all of those steps to find the same things for the index which is NASDAQ.

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