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5. (5 pts.) The bid-ask spread for stocks depends on the market liquidity for stocks. One measure of liquidity is a stock's trading volume. Below
5. (5 pts.) The bid-ask spread for stocks depends on the market liquidity for stocks. One measure of liquidity is a stock's trading volume. Below are the results of a regression analysis using the bid-ask spread at the end of 2018 for a sample of 1,819 NASDAQ-listed stocks as the dependent variable and the natural log of trading volume during December 2018 as the independent variable. Several items in the regression output have been intentionally omitted. Use the reported information to fill in the missing values (X1 to X10). SUMMARY OUTPUT Regression Statistics Multiple R XI R Square X2 Standard Error Observations 1819 ANOVA df SS MS F Significance F Regression 1 14.246 X's X7 Residual 45.893 X6 Total 1818 60.139 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 0.55851 0.018707 29.85540 0 0.52182 0.59520 Slope coefficient -0.04375 0.001842 Xs 0 Xq X10
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