Suppose that as an investor in the stock market, you're looking for a stock that's going tomove in tandem with the overall market. You compute the returns for a stock you'relooking at, and run a regression against a broad market index, obtaining the followingregression output:SUMMARY OUTPUTMultiple RR SquareAdjusted R SquareStandard ErrorObservationsRegression StatisticsANOVARegressionResidualTotalInterceptBroad Market Index47.218.0210.9980.9960.9960.19010.998df189SS0.1310.98880.5410.28980.828MSLLFCoefficients Standard Errort StatP-value.014 0.3403410.1300.021 47.218 4.39E-11What is the test statistic corresponding to the claim that there is a significant correlation?o enter 3 decimal placesSignificance FWhat is the test statistic for the overall validity of the model?enter 3 decimal placesWhat is the best estimate for the pooled variance?xenter 3 decimal placesLower 95% Upper 95%0.0300.1670.9401.036

The given sum of squares regression is 80.541 and sum of squares residual is 0.289.

Answered: Suppose that as an investor in the…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 31EQ

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Apple CAPM Data file posted on has data about the monthly return on Apple Inc. from 1981 to 2005 (300 months) as well as the monthly return on the whole stock market (measured by a value-weight stock market index) and the monthly return on 30-day Treasury Bills. Use this file to answer the following questions: Show all your work, Use Excel. A) Run a regression of the excess return on Apple Inc. on the excess return on the whole marketand write down your estimated equation. B) What is Beta for Apple Inc.? Is it significant C) What is Alpha for Apple Inc.? Is it significant
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Please don't provide handwritten solution.....
Suppose a researcher collects data on houses that have been sold in a particular neighbourhood over the past year, and obtains the regressions results in the table shown below. A family purchases a 2000 square foot home and plans to make extensions totalling 500 square feet. The house currently has a pool, and a real estate agent has reported that the house is in excellent condition. However, the house does not have a view, and this will not change as a result of the extensions. According to the results in column (1), what is the expected DOLLAR increase in the price of the home due to the planned extensions?
Suppose the athletic director at a university would like to develop a regression model to predict the point differential for games played by the men's basketball team. A point differential is the difference between the final points scored by two competing teams. A positive differential is a win, and a negative differential is a loss. For a random sample of games, the point differential was calculated, along with the number of assists, rebounds, turnovers, and personal fouls. Use the data in the accompanying table attached below to complete parts a through e below. Assume a = 0.05. a) Using technology, construct a regression model using all three independent variables. y = __ + (_)x1 + (_)x2 + (_)x3 + (_)x4 b) Test the significance of each independent variable using a= 0.10. c) interpret the p-value for each independent variable. d) Construxt a 90% confidence interval for the regression coefficients for each independent variable and interpret the meaning. e) Using the results from…
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To monitor and improve its productivity, a company made an investigation and found out that the factor that affects the productivity the most is the absenteeism. The company data analytics department have collected data about the two variables (Productivity and Absenteeism) for the 12 past years as shown in the table below. Now the purpose of the company is to determine, through regression analysis, whether the productivity is statistically affected by the absenteeism level or not. Year Absenteeism Productivity (in number of absent worker) (in Million AED) 1 204 342 2 352 336 3 154 406 4 206 410 5 422 278 6 530 214 7 750 138 8 482 268 9 374 262 10 120 356 11 188 396 12 634 152 Questions: Construct a scatter diagram for the data about productivity and absenteeism then interpret the possible relationship that can be found. Construct a simple regression model to predict the…
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