to the purchase of a used freighter. The students create a single variable regression with Ship's Age as the x-variable and Price as the y-variable and found the following results: Which of the following statements is true? SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error 8 Observations 9 10 ANOVA 11 12 Regression 13 Residual 14 Total 15 16 17 Intercept 18 Ship's Age tyre) 0.647447688 0.419188508 0.30302621 1.363303625 df 7 1 5 6 SS MS F 6.707016129 6.707016129 3.608645093 9.292983871 1.858596774 16 Significance F 0.115916336 H t Stat P-value Coefficients Standard Error Lower 95% Upper 95% Lower 95.0% Upper 95.0% 8.81733871 1.372890007 6.422465504 0.001358694 5.288212596 12.34646482 5.288212596 12.34646482 -0.30766129 0.161957391 -1.899643412 0.115916336 0.723986017 0.108663436 0.723986017 0.108663436 There is a 11.6% chance that Ship's Age is significant 30% of the variance in Price is explained by Ship's Age The estimate of the slope of the regression line is -0.31 Ship's Age likely has a positive effect on price
to the purchase of a used freighter. The students create a single variable regression with Ship's Age as the x-variable and Price as the y-variable and found the following results: Which of the following statements is true? SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error 8 Observations 9 10 ANOVA 11 12 Regression 13 Residual 14 Total 15 16 17 Intercept 18 Ship's Age tyre) 0.647447688 0.419188508 0.30302621 1.363303625 df 7 1 5 6 SS MS F 6.707016129 6.707016129 3.608645093 9.292983871 1.858596774 16 Significance F 0.115916336 H t Stat P-value Coefficients Standard Error Lower 95% Upper 95% Lower 95.0% Upper 95.0% 8.81733871 1.372890007 6.422465504 0.001358694 5.288212596 12.34646482 5.288212596 12.34646482 -0.30766129 0.161957391 -1.899643412 0.115916336 0.723986017 0.108663436 0.723986017 0.108663436 There is a 11.6% chance that Ship's Age is significant 30% of the variance in Price is explained by Ship's Age The estimate of the slope of the regression line is -0.31 Ship's Age likely has a positive effect on price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
1
Transcribed Image Text:Some Haskayne students are doing consulting work for a large company in relation
to the purchase of a used freighter. The students create a single variable regression
with Ship's Age as the x-variable and Price as the y-variable and found the following
results:
Which of the following statements is true?
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
6 Adjusted R Square
7 Standard Error
8 Observations
9
10 ANOVA
11
12 Regression
13 Residual
14 Total
15
16
17 Intercept
18 Ship's Age (yrs)
0.647447688
0.419188508
0.30302621
1.363303625
df
SS
1 6.707016129
5
9.292983871
6
16
E
MS
F
6.707016129 3.608645093
1.858596774
F
Significance F
0.115916336
H
t Stat
P-value
Lower 95%
Upper 95%
Coefficients Standard Error
Lower 95.0% Upper 95.0%
8.81733871 1.372890007 6.422465504 0.001358694 5.288212596 12.34646482 5.288212596 12.34646482
-0.30766129 0.161957391 -1.899643412 0.115916336 -0.723986017 0.108663436 -0.723986017 0.108663436
There is a 11.6% chance that Ship's Age is significant
30% of the variance in Price is explained by Ship's Age
The estimate of the slope of the regression line is -0.31
Ship's Age likely has a positive effect on price
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