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Should we invest in Netflix?

The stock market is defined by Investopedia as The market in which shares of publicly
held companies are issued and traded either through exchanges or over-the-counter markets.
To find the potential gain of the buyer and the gain made by the seller, we must evaluate the
stock market quotes. A stock market quote is defined by Investopedia as the most current
prices and quantities at which the shares can be bought or sold. During this study, we will be
evaluating whether we should invest in Netflix, ceteris paribus (Latin for with other things held
constant), based on its stock market quotes.

For this study, I took the quotes of the stock market of Netflix from 2010 to 2015,
wherewith I found the regression equation. To find the equation, I entered the data in Lists and
Spreadsheet as such:

From these data points, I opened a new document, using Data and Statistics to create a
generic plot of data points. I choose the years as the x-coordinate and the quotes and the y-

coordinate. To find the exponential regression model, I did the following steps: Menu - Analyse Regression - Show Exponential. This is what I found:

I found the exponential regression model with f(x)= (3.07777E-235)*(1.31118)^x


Even though I had found the equation using the graph, I used statistics to make sure that the
formula was corrected and whether my graph was a good fit. I returned to my previous
document with my data points and did the following steps: Menu - Statistics - Stat Calculations _
Exponential Regression. This is what I found:

This information proves that the equation for my data is indeed f(x)=
(3.07777E-235)*(1.31118)^x . It also shows that the data provided is reliable as r fits between
the interval of 0.8 or greater, which shows that the graph is correct. Moreover, the coefficient of
determination, r^2, explains that there is hardly any relationship between y and x, a fact
completely true as the stock market is not dependent on the years but on the exchanges of
shares.

Now that I have found the exponential regression equation, I can predict the future
quotes, ceteris paribus. Here are a few quotes predicted for Netflix:

Now, should we invest in Netflix? My answer is yes. In the next few years, the quotes will
increase. I recommend buying shares now and selling them later on, the year the most
profitable to sell it, using the datas given previously is 2020.

Citations:
http://www.msn.com/en-us/money/stockdetails?symbol=US:NFLX
http://www.investopedia.com/terms/s/stockmarket.asp
http://www.investopedia.com/terms/q/quote.asp

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