1. Based on the two regression results for the Southwest Airlines (LUV), should you include US Gas Prices as one of the variables for your model and why?

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Regression Statistics Multiple R 0.475588 R Square 0.226184 Adjusted R Square 0.202002 Standard Error 0.074983 Observations 34 ANOVA df SS MS Regression 1 0.052590 0.052590 9.353511 Residual 32 0.179919 0.005622 Total 33 0.232509 Intercept S&P 500 Coefficients 0.030940 Standard Error 0.013454 t Stat 2.299711 P-value 0.028138 1.299582 0.424929 3.058351 0.004473 R(LUV) = Intercept + B * R(S&P 500) + ei Regression Statistics Multiple R 0.481580 R Square 0.231920 Adjusted R Square 0.182366 Standard Error 0.075900 Observations ANOVA 34 dt SS MS F Regression Residual Total 2 0.0539234 31 0.1785856 33 0.2325090 0.0269617 4.6801817 0.0057608 Intercept S&P 500 US Gas Price Coefficients -0.003963 Standard Error 0.073811 t Stat -0.053686 P-value 0.957530 1.254744 0.440105 2.851012 0.007685 0.032202 0.066930 0.481130 0.633803 R(LUV) = Intercept + B* R(S&P 500) + B2* US Gas Prices + ei