Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.

a. Determine the regression equation.
b. Conduct a test to determine whether the slope of the regression line is positive.
c. Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the offering as the independentvariable?

  • CreatedDecember 10, 2014
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