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Regression - Size of Offering and Price Per Share

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45. 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 attached

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?

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Solution Summary

The regression equation is determined for the relationship between the size of offering and the price per share.

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Please see the attached file.

a. Determine the regression equation.
The regression equation is: Y = 10.67 + 0.003X

b. Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the ...

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