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. Size Price Size Price
($ millions), per Share, ($ millions), per Share,
Company X Y Company X Y
1 9.0 10.8 9 160.7 11.3
2 94.4 11.3 10 96.5 10.6
3 27.3 11.2 11 83.0 10.5
4 179.2 11.1 12 23.5 10.3
5 71.9 11.1 13 58.7 10.7
6 97.9 11.2 14 93.8 11.0
7 93.5 11.0 15 34.4 10.8
8 70.0 10.7
(a) Determine the regression equation. (Round your answers to 4 decimal places.)
b =
a =
(b-1) State the decision rule for .05 significance level: H0:? ? 0 H1:? > 0. (Round your answer to 3 decimal places.)
Reject H0 if t >
(b-2) Compute the value of the test statistic. (Round your answer to 2 decimal places.)
Value of the test statistic
(b-3) Can we conclude that the slope of the regression line is positive? Use the .05 significance level.
Reject OR Do not Reject H0. We can OR cannot conclude that the slope of the regression line is positive.
(c) Determine the coefficient of determination. (Round your answer to 4 decimal places.)