Explore BrainMass

# Statistics

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

1. A study is being undertaken of companies going public. Of particular interest is the relationship between the size of the offering and the price per share. A sample of ten companies that recently went public revealed:

Size Price
(millions) Per Share
Company X Y X2 XY
1 9.0 15.8 81.00 142.20
2 94.4 11.3 8,911.36 1,066.72
3 27.3 13.2 745.29 360.36
4 179.2 10.1 32,112.64 1,809.92
5 71.9 11.1 5,169.61 798.09
6 97.9 11.0 9,584.41 1,076.90
7 93.5 10.9 8,742.25 1,019.15
8 70.0 11.7 4,900.00 819.00
9 160.7 10.3 25,824.49 1,655.21
10 96.5 11.6 9,312.25 1,119.40

Total: 900.4 117.0 105,383.3 9,866.95

a. Determine the regression equation (show your work).

ROW X SQUARED?

b. What does the slope of the regression equation tell us?

10?

c. What would you predict the price per share to be if 95 million shares were offered?

WHAT IS THE FORMULA FOR THIS?