Question-2: You are interested in determining what factors influence the price of a stock. After some examination, a statistician hypothesized that a stock price (Y in S) would be affected by its quarterly dividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The values of the relevant variables were observed for a period of 40 quarters. When the data were run on Excel, the following partial printout was created. Multiple Regression Analysis Parameter Estimate SE t-Statistic Constant 17.3925 ? ? 5.5054 5.5254 X1 7.5016 -0.4158 0.57091 X2 0.5228 ? 1.3982 X3 ? Analysis of Variance Source Sum of Squares Df Mean Square F-Ratio Model ? ? ? Residual 180.095 ? Total 697.040 ? R-squared ? Adjusted R-Squared = ? a) What is the value of b1? Carefully explain what this number means. b) What is the value of SSR? Carefully explain what this number means. c) Test at the 5% level of significance the hypothesis that there is a linear and negative relation between price/earning (X2) and the stock price. State your conclusions in the context of the problem. d) Test the following hypothesis, use a=99. State your conclusions in the context of the problem. Ho: B, = B, = B, = 0
Question-2: You are interested in determining what factors influence the price of a stock. After some examination, a statistician hypothesized that a stock price (Y in S) would be affected by its quarterly dividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The values of the relevant variables were observed for a period of 40 quarters. When the data were run on Excel, the following partial printout was created. Multiple Regression Analysis Parameter Estimate SE t-Statistic Constant 17.3925 ? ? 5.5054 5.5254 X1 7.5016 -0.4158 0.57091 X2 0.5228 ? 1.3982 X3 ? Analysis of Variance Source Sum of Squares Df Mean Square F-Ratio Model ? ? ? Residual 180.095 ? Total 697.040 ? R-squared ? Adjusted R-Squared = ? a) What is the value of b1? Carefully explain what this number means. b) What is the value of SSR? Carefully explain what this number means. c) Test at the 5% level of significance the hypothesis that there is a linear and negative relation between price/earning (X2) and the stock price. State your conclusions in the context of the problem. d) Test the following hypothesis, use a=99. State your conclusions in the context of the problem. Ho: B, = B, = B, = 0
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Need complete solution
![1:43 0
4G
Question-2: You are interested in determining what factors influence the price of a stock. After some
examination, a statistician hypothesized that a stock price (Y in $) would be affected by its quarterly
dividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The
values of the relevant variables were observed for a period of 40 quarters. When the data were run on
Excel, the following partial printout was created.
Multiple Regression Analysis
Parameter
Estimate
SE
t-Statistic
Constant
X1
17.3925
5.5254
?
?
7.5016
5.5054
-0.4158
0.57091
X2
0.5228
?
?
1.3982
X3
Analysis of Variance
Source
Sum of Squares Df Mean Square
F-Ratio
Model
Residual
?
?
?
180.095
?
Total
697.040
R-squared = ?
Adjusted R-Squared = ?
a) What is the value of b1? Carefully explain what this number means.
b) What is the value of SSR? Carefully explain what this number means.
c) Test at the 5% level of significance the hypothesis that there is a linear and negative relation between
price/earning (X2) and the stock price. State your conclusions in the context of the problem.
d) Test the following hypothesis, use a=.99. State your conclusions in the context of the problem.
Họ: B, = B2 = B, = 0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20b09319-2b3d-4a12-be23-f9ec00ee8c2d%2Fbb749304-2f4e-429d-938e-751011fb19b2%2F1y3seo8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1:43 0
4G
Question-2: You are interested in determining what factors influence the price of a stock. After some
examination, a statistician hypothesized that a stock price (Y in $) would be affected by its quarterly
dividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The
values of the relevant variables were observed for a period of 40 quarters. When the data were run on
Excel, the following partial printout was created.
Multiple Regression Analysis
Parameter
Estimate
SE
t-Statistic
Constant
X1
17.3925
5.5254
?
?
7.5016
5.5054
-0.4158
0.57091
X2
0.5228
?
?
1.3982
X3
Analysis of Variance
Source
Sum of Squares Df Mean Square
F-Ratio
Model
Residual
?
?
?
180.095
?
Total
697.040
R-squared = ?
Adjusted R-Squared = ?
a) What is the value of b1? Carefully explain what this number means.
b) What is the value of SSR? Carefully explain what this number means.
c) Test at the 5% level of significance the hypothesis that there is a linear and negative relation between
price/earning (X2) and the stock price. State your conclusions in the context of the problem.
d) Test the following hypothesis, use a=.99. State your conclusions in the context of the problem.
Họ: B, = B2 = B, = 0
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![Elementary Statistics: Picturing the World (7th E…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
![Introduction to the Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman