Answer the following question 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 betweenprice/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, = Bz = B3 = 0 Question-2: You are interested in determining what factors influence the price of a stock. After someexamination, a statistician hypothesized that a stock price (Y in $) would be affected by its quarterlydividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). Thevalues of the relevant variables were observed for a period of 40 quarters. When the data were run onExcel, the following partial printout was created.Multiple Regression AnalysisParameter Estimate SEt-StatisticConstant17.39255.5254?X1?7.50165.5054X2-0.41580.5228?X30.57091?1.3982Analysis of VarianceSourceSum of Squares Df Mean SquareF-RatioModel???Residual180.095??Total697.040?R-squared = ?Adjusted R-Squared = ?

a) The value for b1 is given by b1 = t(b1) x SE(b1) b1 = 7.5016 x 5.5054 b1 = 41.2993 This shows…

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: ß, = Bz = B, = 0