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:

Visual Field

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Bright Color

A visual property that describes how vivid and intense a color appears.