Question: Regression Statistics Multiple R X2 R-squared X1 Standard error X3 Observations 1819 ANOVA df SS MSS F Significance F Regression XS 14.246 X7 X9 0

Regression Statistics Multiple R X2 R-squared X1 Standard error X3 Observations 1819 ANOVA df SS MSS F Significance F Regression XS 14.246 X7 X9 0 Residual XG 45.893 X8 Total X4 GO.139 Standard Lower Upper Coefficients Error *-Statistic p-Value 95% 95% Intercept 0.55851 0.018707 29.85540 0.52182 0.59520 Slope coefficient -0.04375 0.001842 X10 X11 X12 The table presents the output from a linear regression model, and one implication of the regression output is that the bid-ask spread for NASDAQ-listed stocks declines by nearly one-half cent per share if the trading volume increases by 10%. Does is make sense that there should be a negative relationship between the bid-ask spread and trading volume? Suppose volume increases by 35% on one day due to market news. What is the expect impact of this volume shift on the bid-ask spread? Please explain your responses

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