Question: Problem 3: Linear Regression. Note: This is two pages, Excel output on Page 2 for calculating the forecast Suppose that I am trying to estimate

Problem 3: Linear Regression. Note: This is twoProblem 3: Linear Regression. Note: This is twoProblem 3: Linear Regression. Note: This is two

Problem 3: Linear Regression. Note: This is two pages, Excel output on Page 2 for calculating the forecast Suppose that I am trying to estimate Starbucks stock price with a linear regression model. The Day and Volume are being used as my X1 and X2. a) How does the forecast for Day 10 (October 24h) change if Volume is 7000? b) Calculate the forecast for November 1st if Volume is 10000. c) Should I be using both Day and Volume as predictors of stock price, or is one clearly better than the other? (Use Excel output on Page 2) Volume (in 1000's) Da 1 Forecast with Linear Regression: Date Starbucks Stock Price $86.36 10/11/2019 5,622 10/14/2019 2 4,937 $86.62 10/15/2019 3 4,723 $86.45 10/16/2019 4 3,707 $86.71 10/17/2019 5 4,398 $86.29 10/18/2019 6 4,631 $86.03 10/21/2019 7 5,007 $85.35 10/22/2019 8 5,807 $83.46 10/23/2019 9 7,187 $82.74 10/24/2019 10 4,633 $83.18 11 10/25/2019 5,235 $83.38 10/28/2019 12 6,653 $83.60 10/29/2019 13 5,699 $84.13 10/30/2019 14 8,731 $84.19 10/31/2019 15 14,009 $84.56 Excel Output: Regression Statistics Multiple R 0.786292447 R Square 0.618255812 Adjusted R Square 0.55463178 Standard Error 0.961771461 Observations 15 ANOVA Significance df F 9.717332 0.0030948 Regression Residual Total 2 12 14 SS MS 17.97715 8.988574 11.10005 0.925004 29.0772 Coefficients Standard Error t Stat P-value Lower 95% Intercept 0.669163 128.9939 86.32 -0.303 3.16E-20 84.85995101 0.001744 -0.467492383 Day 0.07559 -4.00574 Volume .000161 .000134 1.201948 0.252567 -.00013

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