Sunday, May 8, 2011

Ch 6 project: Curve Fitting with Polynomial Model

I used Yahoo Finance to find the opening values for my stock Walmart Stores Inc. and for the index S&P500 using the day January 5 for the years of 1994, 1995, 1996, 1997, 2000, 2001, 2003 and 2004. I would then plug the numbers into my calculator to see which regression had Y 1 closer to. It was closer to quartic so I used that equation. Then I plugged in the years 2002, 2005, 2008, 2010 & 2011 to get those prices. I later did the same with the index.Using this method doesn't help to find the actually price of the original one. In some years, it may be around there, but many years later it will be too much money. So its not as accurate as the original price.

2002- Many people were very stunned of the 9/11 attacked. A lot of people would’ve bought food and maybe some clothing to keep themselves warm and alive. They have to pay for their homes too so Walmart did help people. People eventually bought a lot of things from here to try to fix up their lives.

2005 – Tax had increased so they had to pay more when they bought things. Things made the index and store get a lot more money from the tax people kept spending. They usually bought a quite amount so tax made them pay just a little bit more.

2008 – The stock decreased because many people were losing their jobs. People kept on losing their jobs throughout the year and it kept continuing until the end of 2008. The index increased from having a lot of other networks to get help and support if they ever needed something.

2010 & 2011 – After the stock market crash, people were getting their jobs back slowly so everything is lightening up a little. People would then try to save up their money to prepare for things like this. People want to live a good life and not have to worry about major problems like this

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