The Prices of Rawlston, Inc

question 16

Essay

The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of company's stocks sold (x₁), and the volume of exchange (in millions) on the New York Stock Exchange (x₂) are shown below. Excel was used to determine the least-squares regression equation. Part of the computer output is shown below.
a. Use the output shown above and write an equation that can be used to predict the price of the stock.
b. Interpret the coefficients of the estimated regression equation that you found in Part a.
c. At 95% confidence, determine which variables are significant and which are not.
d. If in a given day, the number of shares of the company that were sold was 94,500 and the volume of exchange on the New York Stock Exchange was 16 million, what would you expect the price of the stock to be?

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