The Russell 1000 is a stock market index consisting of thelargest U.S. companies. The Dow Jones industrial Average is basedon 30 large companies. The data giving the annual percentagereturns for each of these stock indexes for 25 years are containedin the Excel Online file below. Construct a spreadsheet to answerthe following questions.

Year	DJIA % Return	Russell 1000 % Return
1988	8.82	12.33
1989	26.59	26.44
1990	-3.68	-4.57
1991	16.04	28.88
1992	5.38	1.66
1993	18.58	7.69
1994	6.29	1.76
1995	30.62	37.10
1996	21.49	17.49
1997	19.04	28.68
1998	12.83	29.46
1999	29.15	15.89
2000	-3.01	-6.42
2001	-9.85	-13.16
2002	-15.56	-25.79
2003	27.78	29.69
2004	7.71	10.82
2005	-4.84	8.73
2006	13.34	13.72
2007	8.12	7.04
2008	-31.04	-42.92
2009	20.72	22.47
2010	8.76	9.59
2011	2.80	-3.13
2012	8.40	11.02

a. Which of the following scatter diagramsaccurately represents the data set?

#1	Russell 1000 DJIA	#2	Russell 1000 DJIA
#3	Russell 1000 DJIA	#4	Russell 1000 DJIA

_________Scatter diagram #1Scatter diagram #2Scatter diagram#3Scatter diagram #4

b. Compute the sample mean and standarddeviation for each index (to 2 decimals).

	sample mean	standard deviation
DJIA:
Russell 1000:

c. Compute the sample correlation coefficientfor these data (to 3 decimals).

d. Discuss similarities and differences inthese two indexes.

_________There is a strong positive linear association betweenDJIA and Russell 1000There is a moderate positive linearassociation between DJIA and Russell 1000There is neither apositive nor a negative linear association between DJIA and Russell1000There is a moderate negative linear association between DJIAand Russell 1000There is a strong negative linear associationbetween DJIA and Russell 1000

The variance of the Russell 1000 is slightly_________largersmaller than that of the DJIA.

a. Which of the following scatter diagramsaccurately represents the data set?

#1	Russell 1000 DJIA	#2	Russell 1000 DJIA
#3	Russell 1000 DJIA	#4	Russell 1000 DJIA

_________Scatter diagram #1Scatter diagram #2Scatter diagram#3Scatter diagram #4

b. Compute the sample mean and standarddeviation for each index (to 2 decimals).

	sample mean	standard deviation
DJIA:
Russell 1000:

c. Compute the sample correlation coefficientfor these data (to 3 decimals).

d. Discuss similarities and differences inthese two indexes.

_________There is a strong positive linear association betweenDJIA and Russell 1000There is a moderate positive linearassociation between DJIA and Russell 1000There is neither apositive nor a negative linear association between DJIA and Russell1000There is a moderate negative linear association between DJIAand Russell 1000There is a strong negative linear associationbetween DJIA and Russell 1000

The variance of the Russell 1000 is slightly_________largersmaller than that of the DJIA.