- You believe that the price of Zoom Video conferencing stock and
the price of American Airlines stock will move in opposite
directions. In order to test this relationship, we do a simple
regression with the following variables:
Z- dependent variable: month end price of Zoom Videoconferencing
stock
A- independent variable : month end price of American Airlines
stock
Data for the last 9 months of 2019 are available (9
observations)
Based on the data, we compute the following:
Var (A) = 6.9854
Cov (A,Z) = -1.3735
E(A) = 29.4767
E(Z) = 79.6444
Std Error of Estimate = 10.6733
TSS = 799.5928
- Consider the equation Zt = b0 +
b1 At + εt
Based on the numbers given above, complete the following
table
Variable
|
Estimate
|
Std error
|
t-statistic
|
Slope b1
|
|
1.42777
|
|
Constant b0
|
|
42.2359
|
|
R-square
|
|
N/A
|
N/A
|
F statistic
|
|
|
|
b.Are the coefficients (slope and/or constant) significant at
the .05 level?