IBM wonders if its announcement of an acquisition had a significant impact on its stock price. Onthe day of the announcement/event IBM's stock was up 1% while the Market Index was up 0.06%.Regression results for 120 days prior to the event are: MIBMMarket IndexAverage Daily Returns:0.045%Standard Deviation: 1.103 %0.04%1.265%Intercept = 0.0010; Slope 0.8500:SSR 0.0129Did the Event have a significant impact on the stock price? Test at the 5% significance level?

Answered: Image /qna-images/answer/fd4cbfea-b67d-4e03-be5f-be75ccd8f531.jpg

Answered: IBM wonders if its announcement of an…

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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The relationship between the cost of a taxi ride (y) and the length of ride (x) is analyzed and is determined to be linear. The mean length was 3.9 miles with a standard deviation of 0.8 mile(s). The mean cost was $9.49 with a standard deviation of $1.7. The equation of the regression model is: �'=2.53+ 1.79 x Explain in context what the number 1.79 in the regression model means. Explain in context what the number 2.53 in the regression model means. You take a cab ride for 6 miles. What is the predicted charge using the regression model? Then the driver charges you $15. Did you over- or under- estimate the charge? If so, how much did you over- or under- estimate? Given the standard deviation of your cost var
Suppose you are analyzing a dataset of 77 datapoints investigating the relationship between the number of theme park visitors (dependent variable) and temperature (independent variable). You decide to create a simple linear regression model, which yields a sum of squared residuals of e²=546.51. Using this information, what was the residual standard deviation (Se) found in your analysis? Note: 1- Only round your final answer. Round your final answer to two decimal places.
The mean height of Americanwomen in their twenties is about 64.3 inches, and the standard deviation is about 3.9 inches. The mean height of menthe same age is about 69.9 inches, with standard deviationabout 3.1 inches. Suppose that the correlation between theheights of husbands and wives is about r 0.5.(a) What are the slope and intercept of the regressionline of the husband’s height on the wife’s height in youngcouples?(b) Draw a graph of this regression line for heights of wivesbetween 56 and 72 inches. Predict the height of the husbandof a woman who is 67 inches tall, and plot the wife’s heightand predicted husband’s height on your graph.(c) You don’t expect this prediction for a single couple to bevery accurate. Why not?
Stephen Stigler determined in 1977 that the speed of light is 299,710.5 km/sec. In 1882, Albert Michelson had collected measurements on the speed of light ("Student t-distribution," 2013). His measurements are given in table #7.3.6. Is there evidence to show that Michelson’s data is different from Stigler’s value of the speed of light? Test at the 5% level. Table #7.3.6: Speed of Light Measurements in (km/sec) 299883 299816 299778 299796 299682 299711 299611 299599 300051 299781 299578 299796 299774 299820 299772 299696 299573 299748 299748 299797 299851 299809 299723
Why should one be cautious when interpreting a correlation?
review(16b): The amount of jens monthly phone bill is normally distributed with a mean score of 70 and standard deviation of 12.what percentage of her phone bill lies between $34 and $106 (a) 95% (b) 69% (c) 50% (d) almost all.
An online investment blogger advises investing in mutual funds that have performed badly the past year because "regression to the mean tells us that they will do well next year." Is he correct Choose the correct answer below. O A. No, he is incorrect. The mutual fund will regress to the mean, but it may not do so for a few years. O B. No, he is incorrect. There is no reason to assume that mutual fund returns will regress to the mean. The fund manager may be poor at choosing stocks. OC. No, he is incorrect. The mutual fund will regress to the mean, but this does not mean it will have a positive return. O D. Yes, he is correct. The mutual fund will regress to the mean, which will result in a positive return from the funds.
From generation to generation, the mean age when smokers first start to smoke varies. A survey of 20 smokers of this generation was done to see if the mean starting age was under 19 years old. The sample mean was 18.1 years old, with a sample standard deviation of 1.3 years. Is the data significant at α=.05%?
review(16a): The amount of jens monthly phone bill is normally distributed with a mean score of 70 and standard deviation of 12.what percentage of her phone bill lies between $34 and $106 (a) 95% (b) 69% (c) 50% (d) almost all.
Listed below are altitudes (thousands of feet) and outside air temperatures (°F) recorded during a flight. Find the (a) explained variation, (b) unexplained variation, and (c) indicated prediction interval. There is sufficient evidence to support a claim of a linear correlation, so it is reasonable to use the regression equation when making predictions. For the prediction interval, use a 95% confidence level with the altitude of 6327 ft (or 6.327 thousand feet). Altitude 8 15 22 28 31 33 Temperature 56 39 24 - 28 - 41 - 60 a. Find the explained variation. (Round to two decimal places as needed.)
A manufacturer of light bulbs finds that one light bulb model has a mean life span of 1030 h with a standard deviation of 83 h.Find the z-scores for lightbulbs which last 840 and 890 h. (Round your answers to two decimal places.) The z-score for 840 h is -2.29; the z-score for 890 h is -1.69.Using the answers from Step 1, what percent of these light bulbs will last between 840 and 890 h? (Round your answer to one decimal place.)
A person wishes to predict a woman's shoe size from her height. he has gathered this information from your female classmates. The mean height of women in your class is 64 inches, and the standard deviation is 2 inches. The mean shoe size is 8, and the standard deviation is 1. The correlation between these two variables is .5. What is the slope of the regression line?

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