Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. (20 points) An analyst intends to investigate the relationship between (1) Complete all the missing values (Marked with lower letters in Bold and underpricing

image text in transcribed
image text in transcribed
3. (20 points) An analyst intends to investigate the relationship between (1) Complete all the missing values (Marked with lower letters in Bold and underpricing and the reputation of underwriter in the initial public offering (IPO) Italic) in Figure 1. (12 points) process. Underpricing = (P - P.) / P , Underwriter reputation (RANK) is a score a b C d e between 1.1 and 9.1 with 1.1 being the least reputable underwriter and 9.1 being the most prestigious underwriter (for RANK, X = 5.73, E(X, - X)? =152.3871) Company g h i ID Underpricing Rank 0.024 3.1 2 0.109 7 3 0.022 3.1 0.25 2.1 5 -0.063 6 (2) What is the estimated regression equation relating the underwriter reputation 0.234 4.1 to underpricing? (1 points) 7 0.125 3.333 8 -0.021 9 0.042 8.1 10 0.08 6 11 0.02 4.1 7.1 0.036 1.5 (3) What percentage of the variance in underpricing has been explained by 0.018 8 regression? Is this percentage significant at a = 0.05?(2 points) -0.017 8.875 16 0.067 3.1 17 0.035 8.75 18 0.048 8.75 19 0.083 8.75 20 0.049 5.875 21 0 9 22 0.152 1.1 23 0.124 8.1 SUMMARY OUTPUT: Dependent variable: Underpricing (4) Suppose an issuing company chose an underwriter with the reputation score of Regression Statistics 6.000, what will be your predication of the level of underpricing? (1 points) R Square ANOVA df Sum of Squares Mean Squares Regression Residual 0.1091 Total 0.1291 (5) Construct a 95% confidence interval for B, (1 points) Coefficients Standard Error t Stat Intercept 0.1275 0.0367 3.4742 Rank -0.0115 d

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Discrete Mathematics With Applications

Authors: Susanna S Epp, Robert Gatewood,

4th Edition

1133168663, 9781133168669

More Books

Students also viewed these Mathematics questions

Question

Answer only when know..Question in finance 3 9 6 .

Answered: 1 week ago