Exercise 13-50 (LO13-6)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. SizePrice SizePrice ($ millions),per Share, ($ millions),per Share,CompanyxyCompanyxy19.0 10.8 9 160.7 11.3 294.4 11.3 10 96.5 10.6 327.3 11.2 11 83.0 10.5 4179.2 11.1 12 23.5 10.3 571.9 11.1 13 58.7 10.7 697.9 11.2 14 93.8 11.0 793.5 11.0 15 34.4 10.8 870.0 10.7 a. Determine the regression equation. (Round your answers to 4 decimal places.) b-1. To determine if the slope of the regression line is positive, state the decision rule for 0.05 significance level: H0: β ≤ 0; H1: β > 0. (Round your answer to 3 decimal places.) b-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

Required Regression analysis can be done using excel as follows: 1. Enter the data into the excel…

Answered: Mr. William Profit is studying…

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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Exercise 13-50 (LO13-6)

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.

	Size	Price		Size	Price
	($ millions),	per Share,		($ millions),	per Share,
Company	x	y	Company	x	y
1	9.0		10.8		9	160.7	11.3
2	94.4		11.3		10	96.5	10.6
3	27.3		11.2		11	83.0	10.5
4	179.2		11.1		12	23.5	10.3
5	71.9		11.1		13	58.7	10.7
6	97.9		11.2		14	93.8	11.0
7	93.5		11.0		15	34.4	10.8
8	70.0		10.7

a. Determine the regression equation. (Round your answers to 4 decimal places.)

b-1. To determine if the slope of the regression line is positive, state the decision rule for 0.05 significance level: H₀: β ≤ 0; H₁: β > 0. (Round your answer to 3 decimal places.)

b-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

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