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Below you are given a partial computer output based on a sample of 12 observations relating the number of personal computers sold by a computer shop per month (y), unit price (x1 in $1000), and the number of advertising spots (x2) they used on a local television station.
a.
At α = .05, test to determine if the model is significant. That is, determine if there exists a significant relationship between the independent variables and the dependent variable.
b.
Determine the multiple coefficient of determination.
c.
Determine the adjusted multiple coefficient of determination.
Risk-Free Rate
The theoretical rate of return on an investment with zero risk, often represented by the yield on government bonds.
Market Portfolio
A theoretical portfolio that includes all assets available in the market, with each asset weighted by its market capitalization.
Beta
A benchmark for evaluating the volatility or systematic risk of a security or portfolio vis-à-vis the wider market.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities.
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