One of the theories regarding initial public offering (IPO) pricing is that the initial return (Initial) on an IPO depends on the price revision (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. Initial Revision HighTech 33.93 7.14 18.68 -26.39 8.08 -29.41 No No Yes Click 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). 3-1. Estimate Initial - Bo + BlRevision + B20 + , where the dummy variable d equals 1 for firms that are high- tech and otherwise (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) Answer is complete and correct. Initial Revision 8.4200 0.2220 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.) Answer is complete but not entirely correct. Predicted initial return of a high-tech firm 15.80 a-3. Find the corresponding predicted return of a firm that is not high-tech (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted initial return of a non high-tech firm b-1. Estimate Initial = Bo + By Revision + B20 + E, where the dummy variable d equals 1 for firms that are not high-tech and 0 otherwise. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. 0.1980 Revision 4.01000 Initial = 8,3500 b-2. Use the estimated model to predict 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.) Predicted initial return of a high-tech firm b-3. Find the corresponding predicted return of a firm that is not high-tech. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted initial return of a non high-tech firm One of the theories regarding initial public offering (IPO) pricing is that the initial return (Initial) on an IPO depends on the price revision (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. Initial Revision HighTech 33.93 7.14 18.68 -26.39 8.08 -29.41 No No Yes Click 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). 3-1. Estimate Initial - Bo + BlRevision + B20 + , where the dummy variable d equals 1 for firms that are high- tech and otherwise (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) Answer is complete and correct. Initial Revision 8.4200 0.2220 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.) Answer is complete but not entirely correct. Predicted initial return of a high-tech firm 15.80 a-3. Find the corresponding predicted return of a firm that is not high-tech (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted initial return of a non high-tech firm b-1. Estimate Initial = Bo + By Revision + B20 + E, where the dummy variable d equals 1 for firms that are not high-tech and 0 otherwise. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. 0.1980 Revision 4.01000 Initial = 8,3500 b-2. Use the estimated model to predict 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.) Predicted initial return of a high-tech firm b-3. Find the corresponding predicted return of a firm that is not high-tech. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Predicted initial return of a non high-tech firm
