The Prices of Rawlston, Inc

question 56

Essay

The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of company's stocks sold (x₁), and the volume of exchange (in millions) on the New York Stock Exchange (x₂) are shown below. Excel was used to determine the least-squares regression equation. Part of the computer output is shown below.

a.Use the output shown above and write an equation that can be used to predict the price of the stock.
b.Interpret the coefficients of the estimated regression equation that you found in Part
c.At 95% confidence, determine which variables are significant and which are not.
d.If in a given day, the number of shares of the company that were sold was 94,500 and the volume of exchange on the New York Stock Exchange was 16 million, what would you expect the price of the stock to be?

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Definitions:

Goal Hierarchies

The organization of desired outcomes in a prioritized structure, reflecting the importance or urgency of achieving each goal.

Self-Regulation

Self-regulation is the ability to manage and control one's own emotions, thoughts, and behaviors in accordance with personal goals and societal norms.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards, influencing decision-making and impulse control.

Short-Range Decisions

Choices or judgments made with immediate or near-term outcomes in mind, often without regard to long-term implications.