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Below You Are Given a Computer Output Based on a Sample

question 78

Essay

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 $\alpha$ = 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.

Definitions:

Self-Interest

An individual's actions and decisions are motivated by their own personal gain or interest, often considered as the driving force behind economic activity.

Competition

is the rivalry among sellers in the same market to attract customers by offering better terms, quality, or services.

Freedom of Enterprise

Freedom of enterprise is the principle that individuals or businesses have the right to own, operate, and profit from their own ventures in an open market with minimal government interference.