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egression of the form given below in order to eva eturns of a sample of firms. You run a cross-section ri = B₁ + B₂Si + Ui

egression of the form given below in order to eva eturns of a sample of firms. You run a cross-section ri = B₁ + B₂Si + Ui

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
Problem 1P
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Hi how can I work out question 1 (b) ? 

Question 1 You estimate a regression of the form given below in order to evaluate the effect o firm size on the returns of a sample of firms. You run a cross-sectional regression wit 529 firms: constant 17:37 X where: r¡ is the percentage annual return for the stock (Y) S; is the size of firm i measured in terms of sales revenue (X) The estimated outputs are summarized in the table: Regression Results: NO. of obs = 529 Coefficient. 12.7753 2.0712 FIN303 Class Test Revision(1).pdf R-squared F(1, 527) Model Residual Total ri = B₁ + B₂Si + Ui ? 30.21 SS 169.8387 2962.9288 3132.7675 Std. Error 0.1928 0.3768 S.E of regression df 1 527 528 t-ratio ? ? ? MS 169.8387 5.6223 5.9333 a. By filling in the blank areas complete the above table of regression results. b. Construct the 95% confidence interval for the intercept coefficient and interpre the results. c. Test whether the estimated slope coefficient is significant at the 5% level o significance.
Transcribed Image Text:Question 1 You estimate a regression of the form given below in order to evaluate the effect o firm size on the returns of a sample of firms. You run a cross-sectional regression wit 529 firms: constant 17:37 X where: r¡ is the percentage annual return for the stock (Y) S; is the size of firm i measured in terms of sales revenue (X) The estimated outputs are summarized in the table: Regression Results: NO. of obs = 529 Coefficient. 12.7753 2.0712 FIN303 Class Test Revision(1).pdf R-squared F(1, 527) Model Residual Total ri = B₁ + B₂Si + Ui ? 30.21 SS 169.8387 2962.9288 3132.7675 Std. Error 0.1928 0.3768 S.E of regression df 1 527 528 t-ratio ? ? ? MS 169.8387 5.6223 5.9333 a. By filling in the blank areas complete the above table of regression results. b. Construct the 95% confidence interval for the intercept coefficient and interpre the results. c. Test whether the estimated slope coefficient is significant at the 5% level o significance.
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