Author Question: A recent study by a major financial investment company was interested in determining whether the ... (Read 93 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
A recent study by a major financial investment company was interested in determining whether the annual percentage change in stock price for companies is linearly related to the annual percent change in profits for the company.
 
  The following data was determined for 7 randomly selected companies:
 
   Change Stock Price  Change in Profit
  8.4 4.2
  9.5 5.6
  13.6 11.2
  -3.2 4.5
  7 12.2
  18.4 12
  -2.1 -13.4
 
  Based upon this sample information, what portion of variation in stock price percentage change is explained by the percent change in yearly profit?
  A) Approximately 70 percent
  B) Nearly 19 percent
  C) About 49 percent
  D) None of the above

Question 2

In a multiple regression analysis involving 15 independent variables and 200 observations, SST = 800 and SSE = 240. The adjusted coefficient of determination is
 
  A) 0.15
  B) 0.50
  C) 0.66
  D) 0.70



aidanmbrowne

  • Sr. Member
  • ****
  • Posts: 305
Answer to Question 1

C

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

For a complete list of videos, visit our video library