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50. FILE Mr. William Profit is studying companies going public for the first time. He is particu- larly 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.

50. FILE Mr. William Profit is studying companies going public for the first time. He is particu- larly 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.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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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.

50. FILE Mr. William Profit is studying companies going public for the first time. He is particu- larly 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. Size Price Size Price ($ mllons), per Share, ($ milons), per Share, Company y Company y 1 9.0 10.8 160.7 11.3 94.4 11.3 10 96.5 10.6 27.3 11.2 11 83.0 10.5 4 179.2 11.1 12 23.5 10.3 71.9 11.1 13 58.7 10.7 6. 97.9 11.2 14 93.8 11.0 93.5 11.0 15 34.4 10.8 8 70.0 10.7 a. Determine the regression equation. b. Conduct a test to determine whether the slope of the regression line is positive. c. Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the offering as the independent variable?
Transcribed Image Text:50. FILE Mr. William Profit is studying companies going public for the first time. He is particu- larly 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. Size Price Size Price ($ mllons), per Share, ($ milons), per Share, Company y Company y 1 9.0 10.8 160.7 11.3 94.4 11.3 10 96.5 10.6 27.3 11.2 11 83.0 10.5 4 179.2 11.1 12 23.5 10.3 71.9 11.1 13 58.7 10.7 6. 97.9 11.2 14 93.8 11.0 93.5 11.0 15 34.4 10.8 8 70.0 10.7 a. Determine the regression equation. b. Conduct a test to determine whether the slope of the regression line is positive. c. 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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