Question

1. 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
   
   1. Consider the equation Z_t = b₀ + b₁ A_t + ε_t
      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?

Answer 1