The data below gives the closing price of Harley-Davidson stock at the end of ea

ID: 3370797 • Letter: T

Question

The data below gives the closing price of Harley-Davidson stock at the end of each year from 1994 through 2001.

Year - 1994 1995 1996 1997 1998 1999 2000 2001

Stock - $6.80 $7.03 $11.56 $13.48 $23.54 $31.93 $39.73 $54.31

a. What is the response variable?

b. What is the explanatory variable?

c. Is it reasonable for the two variables to have a cause-and-effect relationship? Explain.

a) Response variable: Stock

The variable whose value is to be predicted is called response variable

Explanatory variable: Year

The variable whose value is to be used for prediction is called explanatory variable

c) It is not cause-and-effect relationship

Cause-and-effect relationship means a relationship in which one event (the cause) makes another event happen (the effect).

But here the data is belonging to time series model

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