Explore BrainMass

Explore BrainMass

    Find the Regression Line Using Excel for Mr. William Profit

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

    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.

    Company Size ($ millions), X Price per Share, Y Company Size ($ millions), X Price per Share Y

    1 9.0 10.8 9 160.7 11.3
    2 94.4 11.3 10 96.5 10.6
    3 27.3 11.2 11 83.0 10.5
    4 179.2 11.1 12 23.5 10.3
    5 71.9 11.1 13 58.7 10.7
    6 97.9 11.2 14 93.8 11.0
    7 93.5 11.0 15 34.4 10.8
    8 70.0 10.7

    Determine the regression equation.

    Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the offering as the independent variable?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:48 pm ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/mr-william-profit-is-studying-companies-going-public-for-the-first-time-153257

    Solution Summary

    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.

    $2.19

    ADVERTISEMENT