The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of s

Question

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 (n millions) on the New York Stock Exchange (x_2) are shown below. Excel was used to determine the least-squares regression equation. Part of the computer output is shown below. 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? $91.80 $142.13 $94.89 $145.21

Explanation / Answer

Answer to the question in detail is below:

The linear regression model looks like:

Y = 118.5059 -.0163X1 -1.5725X2

Lets check out the p values in the table of regression and interpret what is significant.

= 118.5059 + 0*945 -1.5726*16 ( why zero for X1, because it' insigificant)

=93.34 or Answer is option C approx

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