# Question

Stock market analysts are continually looking for reliable predictors of stock prices. Consider the problem of modeling the price per share of electric utility stocks (Y). Two variables thought to influence this stock price are return on average equity (X1) and annual dividend rate (X2). The stock price, returns on equity, and dividend rates on a randomly selected day for 16 electric utility stocks are provided in the file P10_19.xlsx.

a. Estimate a multiple regression equation using the given data. Interpret each of the estimated regression coefficients.

b. Interpret the standard error of estimate se, R2, and the adjusted R2. Does it appear that predictions of price from this equation will be very accurate?

a. Estimate a multiple regression equation using the given data. Interpret each of the estimated regression coefficients.

b. Interpret the standard error of estimate se, R2, and the adjusted R2. Does it appear that predictions of price from this equation will be very accurate?

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