Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card)
6th Edition
ISBN: 9780357191484
Author: David R. Anderson; Dennis J. Sweeney; Thomas A. Williams
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 14.2, Problem 12E
Stock Beta. In June of 2016, Yahoo Finance reported the beta value for Coca-Cola was .82 (Yahoo Finance website). Betas for individual stocks are determined by simple linear regression. The dependent variable is the total return for the stock, and the independent variable is the total return for the stock market, such as the return of the S&P 500. The slope of this regression equation is referred to as the stock’s beta. Many financial analysts prefer to measure the risk of a stock by computing the stock’s beta value.
The data contained in the DATAfile named CocaCola show the monthly percentage returns for the S&P 500 and the Coca-Cola Company for August 2015 to May 2016.
- a. Develop a
scatter diagram with the S&P % Return as the independent variable. - b. What does the scatter diagram developed in part (a) indicate about the relationship between the returns of the S&P 500 and those of the Coca-Cola Company?
- c. Develop the least squares estimated regression equation.
- d. Provide an interpretation for the slope of the estimated equation (that is, the beta).
- e. Is your beta estimate close to .82? If not, why might your estimate be different?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Are the t-statistics here greater than 1.96? What do you conclude?
colgPA= 1.39+0.412 hsGPA
(.33) (0.094)
Find the P value
A poll before the elections showed that in a given sample 79% of people vote for candidate C. How many people should be interviewed so that the pollsters can be 99% sure that from 75% to 83% of the population will vote for candidate C? Round your answer to the whole number.
Suppose a random sample of 459 married couples found that 307 had two or more personality preferences in common. In another random sample of 471 married couples, it was found that only 31 had no preferences in common. Let p1 be the population proportion of all married couples who have two or more personality preferences in common. Let p2 be the population proportion of all married couples who have no personality preferences in common. Find a95% confidence interval for . Round your answer to three decimal places.
Chapter 14 Solutions
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card)
Ch. 14.2 - Given are five observations for two variables, x...Ch. 14.2 - Given are five observations for two variables, x...Ch. 14.2 - Given are five observations collected in a...Ch. 14.2 - Retail and Trade: Female Managers. The following...Ch. 14.2 - Production Line Speed and Quality Control. Brawdy...Ch. 14.2 - The National Football League (NFL) records a...Ch. 14.2 - Sales Experience and Performance. A sales manager...Ch. 14.2 - Broker Satisfaction. The American Association of...Ch. 14.2 - Companies in the U.S. car rental market vary...Ch. 14.2 - Age and the Price of Wine. For a particular red...
Ch. 14.2 - Laptop Ratings. To help consumers in purchasing a...Ch. 14.2 - Stock Beta. In June of 2016, Yahoo Finance...Ch. 14.2 - Distance and Absenteeism. A large city hospital...Ch. 14.2 - Using a global-positioning-system (GPS)-based...Ch. 14.3 - 15. The data from exercise 1...Ch. 14.3 - The data from exercise 2 follow.
The estimated...Ch. 14.3 - Prob. 17ECh. 14.3 - Price and Quality of Headphones. The following...Ch. 14.3 - Sales Experience and Sales Performance. In...Ch. 14.3 - Price and Weight of Bicycles. Bicycling, the...Ch. 14.3 - Cost Estimation. An important application of...Ch. 14.3 - 22. Refer to exercise 9, where the following data...Ch. 14.5 - The data from exercise 1 follow.
Compute the mean...Ch. 14.5 - The data from exercise 2 follow.
Compute the mean...Ch. 14.5 - The data from exercise 3 follow.
What is the...Ch. 14.5 - Prob. 26ECh. 14.5 - To identify high-paying jobs for people who do not...Ch. 14.5 - Broker Satisfaction Conclusion. In exercise 8,...Ch. 14.5 - Cost Estimation Conclusion. Refer to exercise 21,...Ch. 14.5 - Significance of Fleet Size on Rental Car Revenue....Ch. 14.5 - Significance of Racing Bike Weight on Price. In...Ch. 14.6 - 32. The data from exercise 1...Ch. 14.6 - 33. The data from exercise 2...Ch. 14.6 - Prob. 34ECh. 14.6 - 35. The following data are the monthly salaries y...Ch. 14.6 - 36. In exercise 7, the data on y = annual sales ($...Ch. 14.6 - In exercise 5, the following data on x = the...Ch. 14.6 - Prob. 38ECh. 14.6 - 39. In exercise 12, the following data on x =...Ch. 14.7 - The commercial division of a real estate firm...Ch. 14.7 - Following is a portion of the regression output...Ch. 14.7 - Prob. 43ECh. 14.7 - Auto Racing Helmet. Automobile racing,...Ch. 14.8 - Prob. 45ECh. 14.8 - Prob. 46ECh. 14.8 - Prob. 47ECh. 14.8 - Prob. 48ECh. 14.8 - Prob. 49ECh. 14.9 - Consider the following data for two variables, x...Ch. 14.9 - Prob. 51ECh. 14.9 - Predicting Charity Expenses. Charity Navigator is...Ch. 14.9 - Many countries, especially those in Europe, have...Ch. 14.9 - Valuation of a Major League Baseball Team. The...Ch. 14 - The Dow Jones Industrial Average (DJIA) and the...Ch. 14 - Home Sire and Price. Is the number of square feet...Ch. 14 - Online Education. One of the biggest changes in...Ch. 14 - Machine Maintenance. Jensen Tire & Auto is in the...Ch. 14 - Bus Maintenance. The regional transit authority...Ch. 14 - Studying and Grades. A marketing professor at...Ch. 14 - Used Car Mileage and Price. The Toyota Camry is...Ch. 14 - One measure of the risk or volatility of an...Ch. 14 - As part of a study on transportation safety, the...Ch. 14 - Consumer Reports tested 166 different...Ch. 14 - When trying to decide what car to buy, real value...Ch. 14 - Buckeye Creek Amusement Park is open from the...
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.Similar questions
- A history teacher interviewed a random sample of 80 students about their preferences in learning activities outside of school and whether they are considering watching a historical movie at the cinema. 69 answered that they would like to go to the cinema. Let p represent the proportion of students who want to watch a historical movie. Determine the maximal margin of error. Use α = 0.05. Round your answer to three decimal places. arrow_forwardA random sample of medical files is used to estimate the proportion p of all people who have blood type B. If you have no preliminary estimate for p, how many medical files should you include in a random sample in order to be 99% sure that the point estimate will be within a distance of 0.07 from p? Round your answer to the next higher whole number.arrow_forwardA clinical study is designed to assess the average length of hospital stay of patients who underwent surgery. A preliminary study of a random sample of 70 surgery patients’ records showed that the standard deviation of the lengths of stay of all surgery patients is 7.5 days. How large should a sample to estimate the desired mean to within 1 day at 95% confidence? Round your answer to the whole number.arrow_forward
- A clinical study is designed to assess the average length of hospital stay of patients who underwent surgery. A preliminary study of a random sample of 70 surgery patients’ records showed that the standard deviation of the lengths of stay of all surgery patients is 7.5 days. How large should a sample to estimate the desired mean to within 1 day at 95% confidence? Round your answer to the whole number.arrow_forwardIn the experiment a sample of subjects is drawn of people who have an elbow surgery. Each of the people included in the sample was interviewed about their health status and measurements were taken before and after surgery. Are the measurements before and after the operation independent or dependent samples?arrow_forwardiid 1. The CLT provides an approximate sampling distribution for the arithmetic average Ỹ of a random sample Y₁, . . ., Yn f(y). The parameters of the approximate sampling distribution depend on the mean and variance of the underlying random variables (i.e., the population mean and variance). The approximation can be written to emphasize this, using the expec- tation and variance of one of the random variables in the sample instead of the parameters μ, 02: YNEY, · (1 (EY,, varyi n For the following population distributions f, write the approximate distribution of the sample mean. (a) Exponential with rate ẞ: f(y) = ß exp{−ßy} 1 (b) Chi-square with degrees of freedom: f(y) = ( 4 ) 2 y = exp { — ½/ } г( (c) Poisson with rate λ: P(Y = y) = exp(-\} > y! y²arrow_forward
- 2. Let Y₁,……., Y be a random sample with common mean μ and common variance σ². Use the CLT to write an expression approximating the CDF P(Ỹ ≤ x) in terms of µ, σ² and n, and the standard normal CDF Fz(·).arrow_forwardmatharrow_forwardCompute the median of the following data. 32, 41, 36, 42, 29, 30, 40, 22, 25, 37arrow_forward
- Task Description: Read the following case study and answer the questions that follow. Ella is a 9-year-old third-grade student in an inclusive classroom. She has been diagnosed with Emotional and Behavioural Disorder (EBD). She has been struggling academically and socially due to challenges related to self-regulation, impulsivity, and emotional outbursts. Ella's behaviour includes frequent tantrums, defiance toward authority figures, and difficulty forming positive relationships with peers. Despite her challenges, Ella shows an interest in art and creative activities and demonstrates strong verbal skills when calm. Describe 2 strategies that could be implemented that could help Ella regulate her emotions in class (4 marks) Explain 2 strategies that could improve Ella’s social skills (4 marks) Identify 2 accommodations that could be implemented to support Ella academic progress and provide a rationale for your recommendation.(6 marks) Provide a detailed explanation of 2 ways…arrow_forwardQuestion 2: When John started his first job, his first end-of-year salary was $82,500. In the following years, he received salary raises as shown in the following table. Fill the Table: Fill the following table showing his end-of-year salary for each year. I have already provided the end-of-year salaries for the first three years. Calculate the end-of-year salaries for the remaining years using Excel. (If you Excel answer for the top 3 cells is not the same as the one in the following table, your formula / approach is incorrect) (2 points) Geometric Mean of Salary Raises: Calculate the geometric mean of the salary raises using the percentage figures provided in the second column named “% Raise”. (The geometric mean for this calculation should be nearly identical to the arithmetic mean. If your answer deviates significantly from the mean, it's likely incorrect. 2 points) Starting salary % Raise Raise Salary after raise 75000 10% 7500 82500 82500 4% 3300…arrow_forwardI need help with this problem and an explanation of the solution for the image described below. (Statistics: Engineering Probabilities)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY