A researcher is studying companies going public for the first time. She is particularly interested in the relationship between the size of the offering and the price per share. A sample of 13 companies that recently went public revealed the following information. 1) Calculate the correlation coefficient by using the manual calculation formula (not Google sheets formula). (15%) 2) Test the significance (two-tailed test) of the correlation coefficient using five-step P-value method and 0.05 level of significance.(25%)

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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A researcher is studying companies going public for the first time. She is particularly interested in the relationship between the size of the offering and the price per share. A sample of 13 companies that recently went public revealed the following information. 1) Calculate the correlation coefficient by using the manual calculation formula (not Google sheets formula). (15%) 2) Test the significance (two-tailed test) of the correlation coefficient using five-step P-value method and 0.05 level of significance.(25%)

 
size
($ millions)
 
Company price per share
1 9.0 10.8
2 94.4 11.3
3 27.3 11.2
4 179.2 11.1
5 71.9 11.1
6 97.9 11.2
7 93.5 11.0
8 70.0 10.7
9 160.7 11.3
10 96.5 10.6
11 83.0 10.5
12 23.5 10.3
13 58.7 10.7
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