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Below You Are Given a Computer Output Based on a Sample

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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).  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 (X<sub>1</sub>), and the stock price of the company's major competitor (X<sub>2</sub> in dollars).    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  \alpha  = 0.05, test to determine if the Dow Jones average is a significant variable. d.At  \alpha  = 0.05, test to determine if the stock price of the major competitor is a significant variable.
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\alpha = 0.05, test to determine if the Dow Jones average is a significant variable.
d.At α\alpha = 0.05, test to determine if the stock price of the major competitor is a significant variable.


Definitions:

Post-closing Trial Balance

A financial statement prepared after closing entries are made, listing only the balance sheet accounts with non-zero balances.

Ledger

A principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Income Summary

An account in the ledger used to summarize revenues and expenses for a specific period before transferring the net result to capital accounts.

Worksheet

A document or tool used by accountants to draft adjustments and test balances during the end-of-period reporting process, not part of the formal financial statements.

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