Question-2: You are interested in determining what factors influence the price of a stock. After some examination, a statistician hypothesized that a stock price (Y in $) would be affected by its quarterly dividends (X1 in S), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The values of the relevant variables were observed for a period of 40 quarters. When the data were run on Excel, the following partial printout was created. Multiple Regression Analysis Parameter Estimate SE t-Statistic Constant 17.3925 ? 5.5254 7.5016 ? 5.5054 X1 X2 X3 -0.4158 0.57091 0.5228 ? ? 1.3982 Analysis of Variance Source Sum of Squares Df Mean Square F-Ratio Model Residual ? ? ? ? ? 180.095 ? Total 697.040 ? R-squared = ? Adjusted R-Squared = ?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 40E
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ANSWER THE FOLLOWING QUESTION.

 

Question-2: You are interested in determining what factors influence the price of a stock. After some
examination, a statistician hypothesized that a stock price (Y in $) would be affected by its quarterly
dividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The
values of the relevant variables were observed for a period of 40 quarters. When the data were run on
Excel, the following partial printout was created.
Multiple Regression Analysis
Parameter Estimate SE
t-Statistic
Constant
17.3925
5.5254
?
X1
?
7.5016
5.5054
X2
-0.4158
0.5228
?
X3
0.57091
?
1.3982
Analysis of Variance
Source
Sum of Squares Df Mean Square
F-Ratio
Model
?
?
?
Residual
180.095
?
Total
697.040
R-squared = ?
Adjusted R-Squared = ?
Transcribed Image Text:Question-2: You are interested in determining what factors influence the price of a stock. After some examination, a statistician hypothesized that a stock price (Y in $) would be affected by its quarterly dividends (X1 in $), its price/earnings ratio (X2), and the interest rate of treasury bills (X3 in %). The values of the relevant variables were observed for a period of 40 quarters. When the data were run on Excel, the following partial printout was created. Multiple Regression Analysis Parameter Estimate SE t-Statistic Constant 17.3925 5.5254 ? X1 ? 7.5016 5.5054 X2 -0.4158 0.5228 ? X3 0.57091 ? 1.3982 Analysis of Variance Source Sum of Squares Df Mean Square F-Ratio Model ? ? ? Residual 180.095 ? Total 697.040 R-squared = ? Adjusted R-Squared = ?
d) Test the following hypothesis, use a=.99. State your conclusions in the context of the problem.
Ho: B, = Bz = B, = 0
Transcribed Image Text:d) Test the following hypothesis, use a=.99. State your conclusions in the context of the problem. Ho: B, = Bz = B, = 0
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