Question: 3. You are analyzing variables that explain returns on the stock of Boeing Company (BA). You decided to include the following independent variables: i. Cap
3. You are analyzing variables that explain returns on the stock of Boeing Company (BA). You decided to include the following independent variables: i. Cap weighted index of all companies listed on NYSE, Amex and NASDAQ ii. S\&P 500 because Boeing is a large company iii. Trade weighted index of the F/X of USD (because BA sells a lot outside USA) Look at the ANOVA table below which summarizes results of this regression: a) Test if jointly all of the coefficients of regression are equal to zero. State the hypothesis and perform the test. What is the conclusion? b) Test if each of the coefficients individually is significant at the \(95\%\) confidence c) Are any of the regression assumptions violated? If so which one(s) d) If you identified any violations in c, propose the remedy.
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