Below You Are Given a Partial Multiple Regression Computer Output

question 31

Essay

Below you are given a partial multiple regression 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). $\begin{array}{lll} & \text { Coefficients } & \text { Standard Error } \\\text { Constant } & 20.000 & 5.455 \\\mathrm{x}_{1} & 0.006 & 0.002 \\\mathrm{x}_{2} & -0.70 & 0.200\end{array}$ ​
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 major competitor is $50, what would you expect the price of the stock to be?
c.
At α = .05, test to determine if the Dow Jones average is a significant variable.
d.
At α = .05, test to determine if the stock price of the major competitor is a significant variable.

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Definitions:

Neural Signals

Electrical or chemical signals transmitted by neurons to communicate with each other or to muscles or glands.

Blind Spot

A part of the visual field that lacks light-detecting photoreceptor cells on the optic disc, leading to a gap in the visual field.

Optic Nerve

Is a crucial part of the eye and visual system, transmitting visual information from the retina to the brain.

Adjustable Opening

A mechanism or feature that allows the size of an opening to be altered or adjusted as needed.