Microsoft is a company that sells its products in many countries all over the world. Use the data from Table 11.3.18 to explore how its market price movements relate to more general movements in the global economy.
a. Is Microsoft significantly related to the S&P 500 Index of the U.S. stock market? Please support your result with the t statistic and a p-value statement.
b. Is Microsoft significantly related to the FTSE 100 Index of the London Stock Exchange? Please support your result with the t statistic and a p-value statement.
c. Is Microsoft significantly related to the Hang Seng Index of the Hong Kong Stock Exchange? Please support your result with the t statistic and a p-value statement.
d. Compare the coefficients of determination from three separate regressions, where each regression predicts Microsoft stock movements from one of the indexes, to make a statement about Microsoft and the global economy.

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TABLE 11.3.18 Monthly Percentage Changes for Stock Market Indexes and for Microsoft Date 4/1/2010 3/1/2010 2/1/2010 1/4/2010 12/1/2009 11/2/2009 10/1/2009 91/2009 83/2009 7/2/2009 61/2009 5/1/2009 4/1/2009 3/2/2009 2/2/2009 1/2/2009 12/1/2008 11/3/2008 10/2/2008 9/1/2008 8/1/2008 Hang Seng Index FTSE 100 Index S&P 500 Index Microsoft 4.32% 3.61% 2.56% 6.07 3:20 5.39% 5.88 2.85 3.70 1.78 5.74 1.98 3.57 3.36 7.41 0.02 5.31 9.39 8.54 -10.99 -8.57 0.78 2.21 2.42 8.00 0.23 0.32 3.81 6.24 4.13 11.94 -4.15 4.28 3.66 6.51 7.81 4.34 5.39 2.90 4.58 6.52 8.45 -3.82 13.74 3.78 10.28 13.79 4.93 -12.06 -3.81 -8.85 -16.33 -2.20 6.51 17.07 14.33 5.97 -3.51 8.09 2.51 7.70 -6.42 3.41 -2.04 -10.71 -13.02 3.59 -0.58 -22.47 -15.27 6.46 -16.94 -9.08 1.22 TABLE 11.3.18 Monthly Percentage Changes for Stock Market Indexes and for Microsoft-cont'd Date 7/2/2008 62/2008 5/1/2008 41/2008 Hang Seng Index FTSE 100 Index S&P 500 Index Microsoft 2.85 9.91 4.75 12.72 -0.99 -8.60 1.07 4.75 -6.50 -2.86 -0.33 0.48 3.80 -0.56 6.76