Mr. William Profit is studying companies going public for the first time. He is particularly interested
in the relationship between the size of the offering and the price per share. A sample
of 15 companies that recently went public revealed the following information.
(see the attached chart)
a. Determine the regression equation.
b. Determine the coefficient of determination. Do you think Mr. Profit should be satisfied
with using the size of the offering as the independent variable?
Please see the attached file. (Tables etc may not be clearly visible here)
Company Size ($millions), per Share, X Price ($millions), per Share, ...
Solution Summary
Solution explains the steps in finding the regression equation between size of offering and price of share. Solution also makes use of coefficient of correlation and determination to coclude whether size of offering as independent variable is justified.
...Coefficients Standard Error t Stat p-value Intercept ... 4 and x2 = 150 into the estimated regression to get Y ... for the significance of the coefficient on aggregate ...
... a and be are known as the regression coefficients .They are ... in the cognitive scores is accounted for by the regression equation ... Pearson correlation coefficient. ...
... 1.969637 Total 10 388.1818182 Standard Upper Coefficients Error t ... is below 0.05 for the coefficient (2.45E ...Regression Statistics Multiple R 0.976900175 R Square ...
...Coefficients Standard Error t Stat P-value Lower 95 ... 4225 195 5 80 25 6400 400 Correlation Coefficient 2 60 ...Regression Statistics Multiple R R Square Adjusted R ...
...Coefficients Standard Error t Stat P-value Lower 95 ... 4225 195 5 80 25 6400 400 Correlation Coefficient 2 60 ...Regression Statistics Multiple R R Square Adjusted R ...
... Y^2 XY 1 -10 1 100 -10 Correlation Coefficient 2 -20 ... ANOVA df SS MS F Significance F Regression 1 1000 1000 ...Coefficients Standard Error t Stat P-value Lower 95 ...
... (c) Find the regression coefficients a and b. (d) Place the regression line on the scatter diagram. ... (p) Compute the correlation coefficient r. (q) ii. ...
