2 Exercise 17-7 Static 1.25 One of the theories regarding initial public offering (IPO) pricing is that the initial return (Initial) on an IPO depends on the price revision points (Revision). Another factor that may Influence the initial return is whether or not the firm is high-tech. The following table shows a portion of the data on 264 IPO firms. 03:33:22 Initial Revision HighTech 33.93 7.14 No 18.68 -26.39 No 0.08 -29.41 Yes ExpictureClick here for the Excel Data File Hint: You have to first convert the high-tech categorical variable (Yes/No) Into a dummy variable (1/0). a-1. Estimate Initial = 60 + 81Revision + 82d + , where the dummy variable dequals 1 for firms that are high-tech and 0 otherwise. (Negative values should be Indicated by a minus sign. Round your answers to 4 decimal places.) Answer is complete and correct. Initial = 8.4200 0.2200 Revision 3.6800 d a-2. Use the estimated model to predict the initial return of a high-tech firm with a 10% price revision. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) x Answer is complete but not entirely correct. Predicted initial return of a high-tech firm -97.44 x2 a-3. Find the corresponding predicted return of a rm that Is not hightech. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) 1-25 0 Answer is complete but not entirelyr correct. DOl'IIS f\\ Predicted initial return ofa non high-tech rm 4.01 e as | 0 03:37.18 | \\ / la-1. Estimate Initial = so + 81Reuision + 82:! + 5. where the dummy variable dequals 'I for firms that are not hightech and 0 otherwise. (Negative values should he Indicated by a minus sign. Round your answers to 4 decimal places.) 0 Answer is complete but not entirelyr correct. Revision 4. Initial: 3.35006 + 0.19000 4.01000 d h-2. Use the estimated model to predict Initial return of a high-tech firm with .3100; price revision. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) 0 Answer is complete but not entirelyr correct. Predicted initial return of a high-tech rm 8.95 o la-3. Find the corresponding predicted return of a rm that Is not hightech. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted initial return of a non high-tech rm