Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.
SizePrice SizePrice
($ millions),per Share, ($ millions),per Share,
CompanyXYCompanyXY
19.0 10.8 9 160.7 11.3
294.4 11.3 10 96.5 10.6
327.3 11.2 11 83.0 10.5
4179.2 11.1 12 23.5 10.3
571.9 11.1 13 58.7 10.7
697.9 11.2 14 93.8 11.0
793.5 11.0 15 34.4 10.8
870.0 10.7
(a) Determine the regression equation. (Round your answers to 4 decimal places.)
(b-1) State the decision rule for .05 significance level: H0:? ? 0 H1:? > 0. (Round your answer to 3 decimal places.)
(b-2) Compute the value of the test statistic. (Round your answer to 2 decimal places.)
(b-3) Can we conclude that the slope of the regression line is positive? Use the .05 significance level.
(c)Determine the coefficient of determination. (Round your answer to 4 decimal places.)
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Mr. William Profit is studying companies going public for the first time. He is particularly interes...
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