egression of the form given below in order to eva eturns of a sample of firms. You run a cross-section ri = B₁ + B₂Si + Ui

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Hi how can I work out question 1 (b) ? 

Question 1
You estimate a regression of the form given below in order to evaluate the effect o
firm size on the returns of a sample of firms. You run a cross-sectional regression wit
529 firms:
constant
17:37
X
where:
r¡ is the percentage annual return for the stock (Y)
S; is the size of firm i measured in terms of sales revenue (X)
The estimated outputs are summarized in the table:
Regression Results: NO. of obs = 529
Coefficient.
12.7753
2.0712
FIN303 Class Test Revision(1).pdf
R-squared
F(1, 527)
Model
Residual
Total
ri = B₁ + B₂Si + Ui
?
30.21
SS
169.8387
2962.9288
3132.7675
Std. Error
0.1928
0.3768
S.E of regression
df
1
527
528
t-ratio
?
?
?
MS
169.8387
5.6223
5.9333
a. By filling in the blank areas complete the above table of regression results.
b. Construct the 95% confidence interval for the intercept coefficient and interpre
the results.
c. Test whether the estimated slope coefficient is significant at the 5% level o
significance.
Transcribed Image Text:Question 1 You estimate a regression of the form given below in order to evaluate the effect o firm size on the returns of a sample of firms. You run a cross-sectional regression wit 529 firms: constant 17:37 X where: r¡ is the percentage annual return for the stock (Y) S; is the size of firm i measured in terms of sales revenue (X) The estimated outputs are summarized in the table: Regression Results: NO. of obs = 529 Coefficient. 12.7753 2.0712 FIN303 Class Test Revision(1).pdf R-squared F(1, 527) Model Residual Total ri = B₁ + B₂Si + Ui ? 30.21 SS 169.8387 2962.9288 3132.7675 Std. Error 0.1928 0.3768 S.E of regression df 1 527 528 t-ratio ? ? ? MS 169.8387 5.6223 5.9333 a. By filling in the blank areas complete the above table of regression results. b. Construct the 95% confidence interval for the intercept coefficient and interpre the results. c. Test whether the estimated slope coefficient is significant at the 5% level o significance.
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