Interpret the estimated slope coefficient of your regression line, in writing, a

Question

Interpret the estimated slope coefficient of your regression line, in writing, and discuss its finance implications.Interpret the R2 of your estimated regression line in writing.

SUMMARY OUTPUT Regression Statistics Multiple R 0.666203967 R Square 0.443827726 Adjusted R Square 0.420653881 Standard Error 2.325525728 Observations 26 ANOVA df SS MS F Significance F Regression 1 103.5758804 103.5759 19.1521 0.000203 Residual 24 129.7936779 5.40807 Total 25 233.3695583 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 0.275875942 0.463647873 0.595012 0.557405 -0.68105 1.232798 -0.68105 1.232798 X Variable 1 0.033045114 0.007550906 4.376311 0.000203 0.017461 0.048629 0.017461 0.048629

Explanation / Answer

Interpret the estimated slope coefficient of your regression line, in writing, and discuss its finance implications.Interpret the R2 of your estimated regression line in writing.

Answer : HEre slope coeffiicent = 0.033 that means that if there an increase of 1 unit in x variable then there will be 0.033 units changed in the predicated value of the varaible y.

Its finance implications can be that if there is increase in raw material price of 1 unit then there could be increase of 0.033 in price of that product.

HEre R- squrare = 0.4438 so that means the 44.38% variation in y - variable can be explained by the x - variable .

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