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:

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The recurrence of a past condition or behavior, often referring to the return to substance use after a period of abstinence.

Schizophrenia

A chronic mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior, often resulting in hallucinations, delusions, and reduced participation in daily activities.

Delusions

False beliefs held with strong conviction despite superior evidence to the contrary.

Critical

Involving the objective analysis and evaluation of an issue in order to form a judgment; essential for problem solving and decision making.