Essay
Below you are given a partial Excel output based on a sample of 30 days of the price of a company's stock (y in dollars), the Dow Jones industrial average (x1), and the stock price of the company's major competitor (x2 in dollars).
a.Use the output shown above and write an equation that can be used to predict the price of the stock.
b.If the Dow Jones Industrial Average is 2650 and the price of the competitor is $45, what would you expect the price of the stock to be?
c.At = 0.05, test to determine if the Dow Jones average is a significant variable.
d.At = 0.05, test to determine if the stock price of the major competitor is a significant variable.
Correct Answer:
Verified
a.
= 20 + 0.03x1 - 0.7x2
b.$68
c....View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
= 20 + 0.03x1 - 0.7x2b.$68
c....
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q43: In a multiple regression analysis involving 10
Q50: Exhibit 13-8<br>The following estimated regression model
Q60: Below you are given a partial ANOVA
Q63: The prices of Rawlston, Inc. stock (y)
Q65: A regression model involving 3 independent variables
Q72: Exhibit 13-8<br>The following estimated regression model
Q77: A regression model involved 18 independent variables
Q90: In a multiple regression model, the
Q105: Exhibit 13-8<br>The following estimated regression model
Q143: Exhibit 13-6<br>Below you are given a