Below You Are Given a Computer Output Based on a Sample

question 80

Essay

Below you are given a computer output based on a sample of 30 days of the price of a company's stock Y in dollars), the Dow Jones industrial average X1), and the stock price of the company's major competitor X2 in dollars).
$\begin{array}{lr}&\text { Coefilicient }&\text { Standard Error }\\\text { Constant } & 20.000 & 5.455 \\\mathrm{X}_{1} & 0.006 & 0.002 \\\mathrm{X}_{2} & -0.70 & 0.200\end{array}$
a. Use the output shown above and write an equation that can be used to predict the price of the stock.
b. If the Dow Jones Industrial Average is 10,000 and the price of the competitor is $50, what would you expect the price of the stock to be?
c. At α = 0.05, test to determine if the Dow Jones average is a significant variable.
d. At α = 0.05, test to determine if the stock price of the major competitor is a significant variable.

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Definitions:

Breach

The violation or infringement of a law, agreement, or code of conduct.

Secret Commission

A payment made to an agent or a representative for facilitating a transaction or agreement, typically without the knowledge of some or all of the principal parties involved.

Commission Recovery

The process by which a salesperson, agent, or broker seeks to reclaim commission fees that were not paid as agreed upon in a transaction.

Dual Agency

A real estate arrangement where one agent represents both the buyer and the seller in a transaction.