I've attached the sales information and everything else is in the Compass Maritime case. Using EXCEL, perform a simple regression using ship price and ship age. What is the nature of this relationship? Next look at a scatterplot between ship price and charter rate. What is the nature of the relationship between these two variables?

Now perform a multiple regression analysis, using all three factors. Are all three factors significant? Based on your analysis, what price should Karatzas recommend for the "Bet Performer"? Explain.

Exhibit 4: Sales of Capesize Ships from January 2007 to May 2008
			Sale Price	Year	Age at Sale	Dead-Weight Tons	Trailing 1-Year Average Monthly Baltic Dry
	Sale Date	Vessel Name	($US millions)	Built	(Years)	(000)	Capesize Index
1	Jan-07	Lowlands Beilun	$73.0	1999	8	170.2	4,647
2	Jan-07	CHS Moon	$45.0	1991	16	150.2	4,647
3	Jan-07	Spring Brave	$62.0	1995	12	151.1	4,647
4	Jan-07	Martha Verity	$60.0	1995	12	158.0	4,647
5	Jan-07	TMT TBN	$61.3	1993	14	174.7	4,647
6	Feb-07	Pantelis SP	$83.0	1999	8	169.9	4,878
7	Feb-07	Amazon	$45.0	1990	17	149.5	4,878
8	Mar-07	Cape Kassos	$100.0	2004	3	170.0	5,245
9	Mar-07	Johnny K	$65.0	1994	13	165.3	5,245
10	Mar-07	Zorbas	$70.0	1996	11	165.1	5,245
11	Mar-07	Americana	$33.0	1987	20	149.0	5,245
12	Mar-07	Martha Verity	$63.0	1995	12	158.0	5,245
13	Mar-07	Ullswater	$43.0	1990	17	123.5	5,245
14	Apr-07	Formosabulk Brave	$95.0	2001	6	170.1	5,752
15	Apr-07	Formosabulk Clement	$95.0	2001	6	170.1	5,752
16	Apr-07	Nautical Dream	$63.5	1994	13	151.4	5,752
17	Apr-07	Formosabulk Allstart	$67.0	1995	12	150.4	5,752
18	Apr-07	Arimathian	$62.0	1994	13	149.8	5,752
19	Apr-07	Boss	$31.0	1985	22	139.8	5,752
20	May-07	Zorbas II	$86.0	1996	11	174.5	6,201
21	May-07	Fertilia	$50.5	1997	10	172.6	6,201
22	May-07	Ingenious	$64.2	1996	11	170.0	6,201
23	Jun-07	Anangel Dawn	$67.0	1994	13	149.3	6,618
24	Jun-07	Orient Fortune	$28.0	1984	23	161.4	6,618
25	Jul-07	Great Moon	$30.0	1984	23	146.0	6,980
26	Jul-07	Gran Trader	$105.0	2001	6	172.5	6,980
27	Aug-07	Cape Brazil	$22.0	1981	26	140.8	7,441
28	Sep-07	Thalassini Kyra	$133.0	2002	5	164.2	8,181
29	Oct-07	Tiger Lily	$90.0	1995	12	149.2	8,886
30	Oct-07	Dong-A-Helios	$47.0	1986	21	146.9	8,886
31	Oct-07	Marine Hunter	$45.0	1984	23	164.5	8,886
32	Oct-07	Peace Glory	$57.0	1984	23	166.1	8,886
33	Nov-07	Sumihou	$106.0	1996	11	171.1	9,663
34	Nov-07	Gran Trader	$152.0	2001	6	172.6	9,663
35	Nov-07	Netadola	$97.0	1993	14	149.5	9,663
36	Nov-07	Nordstar	$38.0	1983	24	150.7	9,663
37	Nov-07	Captain Vangelis L	$87.5	1992	15	148.2	9,663
38	Dec-07	Voutakos	$78.0	1987	20	188.3	10,299
39	Dec-07	Sachuest	$35.0	1986	21	98.4	10,299
40	Jan-08	Sinfonia	$83.7	1991	17	184.4	10,526
41	Jan-08	Jin Tai	$155.0	2004	4	173.9	10,526
42	Feb-08	Dias	$58.0	1988	20	135.0	10,844
43	Mar-08	Desimi	$83.0	1989	19	207.1	11,193
44	Mar-08	Samos	$25.0	1982	26	137.0	11,193
45	Mar-08	Cape Sun	$135.0	1999	9	171.7	11,193
46	Apr-08	Nightflight	$158.0	2004	4	170.0	11,614
47	May-08	Cape Falcon	$87.2	1993	15	161.5	12,479
48	May-08	Castle Peak	$82.0	1990	18	145.4	12,479
Source: Adapted from Compass Weekly Market Report (various issues) and Thompson Reuters Datastream, accessed 7/25/10.