A researcher conducted the regression of stock return rate and obtained the following equation: , =...
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A researcher conducted the regression of stock return rate and obtained the following equation: ŷ, = 0.638 +0.402 x2,-0.891 x 31 y, (0.436) (0.291) (0.763) R² = 0.96 R² = 0.89 But he thinks there may be problems with this model. Consider their significance of the coefficients by calculating t-ratios, and figure out where the problem is and how to fix it. (Suppose the critical value of the T-statistic is 2) A researcher conducted the regression of stock return rate and obtained the following equation: ŷ, = 0.638 +0.402 x2,-0.891 x 31 y, (0.436) (0.291) (0.763) R² = 0.96 R² = 0.89 But he thinks there may be problems with this model. Consider their significance of the coefficients by calculating t-ratios, and figure out where the problem is and how to fix it. (Suppose the critical value of the T-statistic is 2)
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Answer rating: 100% (QA)
The tratios for the coefficients of x2t and x3t are 04020436 092 and 08910763 117 respectively The c... View the full answer
Related Book For
Introduction To Probability And Statistics
ISBN: 9781133103752
14th Edition
Authors: William Mendenhall, Robert Beaver, Barbara Beaver
Posted Date:
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