One of the theories regarding initial public offering (IPO) pricing is that the initial return y (the percentage change from offer to open price) on an IPO depends on the price revision (the percentage change from pre-offer to offer price). Another factor that may influence the initial return is a high-tech dummy variable that equals 1 for high-tech firms and otherwise. The following table shows a portion of the data on 264 IPO firms from January 2001 through September 2004 Initial Return 37.08 10.92 Price Revision -8.01 - 30.82 High-Tech 0 0 8.26 -17.90 1 Dricture Click here for the Excel Data Elle 3-1. Estimate y - Ho + B* + Bzd " where the dummy variable d equals 1 for firms that are high-tech. (Round your answers to 2 decimal places.) Initial Return 30 Price Revision High-Tech 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.) Predicted return of a high-tech firm 2-3. 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 return of a non high-tech firm b-1. Estimate y - Be + Bx + f2d + e where the dummy variable d equals 1 for firms that are not high-tech (Negative values should be indicated by a minus sign. Round your answers to 2 decimal place.) Inital Return Price Revision High-Tech b-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.) Predicted the initial return of a high-boch firm b-3. Find the corresponding predicted return of a firm that is and final answer to 2 decimal places.) thigh-tech (Round coefficient estimates to at least 4 decimal places Predicted return of a non high-tech firm c-1. In the high-tech models, determine if the dummy variable is significant at the 5% level. The dummy variable is significant since the p-value is less than 0.05. The dummy variable is not significant since the p value is more than 0.05. The dummy variable is significant since the p value is more than 0.05 The dummy variable is not significant since the p value is less than 0.05. COM c-2. In the not high-tech models, determine if the dummy variable is significant at the 5% level. The dummy variable is significant since the p-value is less than 0.05. The dummy variable is not significant since the p value is more than 0.05. The dummy variable is significant since the pvalue is more than 0.05. The dummy variable is not significant since the pvalue is less than 0.05. Recover Unsaved Workbooks. We were able to save changes to one or more file G9 A x V fx B C D 10 1 Initial Return 2 37.08 3 10.92 4 -5.2 5 32.53 6 0 7 10.72 8 19.57 9 0 10 0 11 0 12 -31.71 13 1.98 14 -6.92 15 8.67 16 -7.19 41.66 -15.57 19 15.52 20 4.34 21 10.91 22 38.72 123 -10.9 24 16.88 25 15.99 26 9.73 22 6.53 28 0.57 29 0 30 4.71 31 18.86 10.95 33 8.18 16.82 35 6.8 35 1.93 37 9.7 20.31 7.84 3409 58.83 0.7 Price Revision High-tech -8.01 0 -30.82 0 4.29 0 -55.33 1 -18.02 0 1 0 1 -26.63 0 -9.85 0 -7.06 0 -7.37 0 17.49 0 6.45 0 14.21 1 -29.92 1 41.91 1 2.87 1 -50.94 1 -17.3 0 23.84 1 -6 0 5.19 0 56.69 1 -0.28 0 0.76 1 -36.96 1 9.04 1 33.52 7.02 0 1 18 olo 0 1 -18.71 -30.93 0.63 0 -24.27 1 ol 0 1 0 0 9.87 16.82 3.46 7.2 lol 0 43 0 0 1 0 44 45 46 47 48 11.51 22.12 7.99 0 0 0 13.58 19.63 18.82 0 -21.02 -22.24 -17.75 3.69 0 6.26 6.43 28.34 -29.79 -37.91 -11.16 5.27 -0.42 -21.24 7:07 1 0 1 1 0 49 50 51 52 53 54 55 56 57 58 59 1 1 0 0 0 6.24+ 1 0 0 60 61 162 53 64 65 66 67 68 69 70 0.46 -19.13 18.24 0 5.61 0 9.04 24.8 17 10.93 17.97 O 4.27 14.64 19.57 -4.46 13.64 10.79 14.35 6.44 7.42 -7.17 27.3 1 O 0 0 17.85 25.94 6.82 48.97 -5.59 4.21 3.02 54.43 -40.01 3.93 0 1.59 -7.11 10.26 HON 0 0 0 1 0 0 1 21.65 72 23 74 75 76 77 78 79 80 1 1 1 6.64 4.62 4.34 0 21.32 26.66 49.03 14.59 0 -19.14 2.6 23.19 6.83 13.63 9.06 35.88 -53 62 1 82 33 0 1 B D F 83 1 0 0 14.69 44.57 -2.52 11.56 -17.12 0 3.96 84 85 86 87 88 89 0 0 0 0 0 1 90 91 0 0 1 12.65 -19.31 16.45 25.45 15.23 31.36 0 0 -53.62 7.72 -48.81 -10.53 0 -31.62 -6.96 44.07 -5.33 48.46 22.89 1.56 0 32.64 -9.7in -11.69 0 11.39 -17.45 -1.15 33.65 3.21 -39.91 2.64 -2.2 13.89 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 0 1 1 0 0 0 0 0 1 0 1 19.95 -29.35 7.6 -6.04 22.72 4.43 14.71 0.05 -3.99 -10.11 23.47 -1.14 -3.63 -5.74 8.95 -2.9 0 0 8.09 50.31 1 0 0 0 0 0 1 112 1 3.21 6.03 0.64 -12.52 0 -11.5 -15.84 23.81 -40.62 18.14 0 116 117 g 1 1 36.74 22 33 1 G9 X & fc B A D C E 40.34 -2.17 68.86 11.4 0.01 0 -20.49 0 S1.08 0 1 0 1 0 0 0 0 1 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 O 0 1 1 1 0 1 1 14.18 -5.46 10.77 18.82 -7.63 4.22 0 3.87 1 -23.7 -24.42 -22.29 -21.51 3.03 -5709 14 16 -16.38 5.34 -5.21 20.32 -8.4 13.56 28.68 -12.67 -16.11 -59.15 0 2.6 -35.56 -26.53 143.01 0 42.67 9.31 12.67 26.99 3.67 O 2.45 6.88 18.36 0 0 0 0 1 0 142 143 104 0 4.27 18.57 -1.41 0 50.99 12.87 0 -3.02 19.37 -11.65 1:43 4.36 3.9 13.41 -0.48 -8.14 11.62 16.89 0 3.73 5.67 -3.22 15.71 20.57 -10.94 3.26 -13 44 3.46 14:56 4.07 2.83 0 1 1 0 265 46 147 18 149 150 151 152 153 150 55 156 152 155 1 16 0 1 1 1 0 1 1 0 0 0 16 1 . G9 x & fc E D F G A B 26.49 13.29 0 1 1 1 . 0 0 17.84 22.23 0 5.28 -7.83 0 0 0 0 1 1 1 1 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 172 178 179 180 181 182 183 1.84 185 286 187 188 189 190 191 1 16.25 -16.76 -11.15 -4.74 41.15 16.34 2.33 10.47 0 5.21 -36.7 -17.03 12.23 -31.66 44.61 -35.84 1.8 -14.06 -9.79 43.79 -5.83 22.14 12.02 -2.2 -2.48 -16 -1.38 8.45 0 0 1 1 0 15.87 31.81 -2.94 32.63 7.9 21.12 4.66 4.96 4.15 9.7 10.56 6.23 0 1.36 17-3 0 29.95 -3.42 3:33 -17.79 5.72 1.55 -4.99 26.76 -6.32 4102 0.57 10.47 -9.39 7.04 0 0 0 0 0 1 1 192 193 194 195 196 197 -10.24 -15.57 0 -2.51 -12.24 0 -18.42 -13.56 25.39 0 1 1 0 1 0 O 0 18 0 0 200 201 202 DO 10.5 15.36 lololo 5.29 B C 1.81 -37.31 0 17.19 3.33 8.94 -17.72 0 -3.33 12.65 3.03 0 1 0 0 0 0 1 1 0 lololol -21.53 -3.85 34.24 -31.38 0 24.5 10 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 223 222 228 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 2012 242 243 264 1 1 0 1 0 0 o 0 1 0 SA 15.64 6.41 29.37 0 7.01 -15.41 0 11.8 12.88 39.79 12.84 4.33 1.51 10.5 124.59 7.87 -17.96 -0.06 4.72 -8.77 4.06 -20.25 -1.39 3.05 4.17 30.26 7.66 26.51 86.75 -16.7 -15.75 -3.97 24.39 -34.15 35.45 -7.25 0 0 11.87 19.9 13.13 -0.89 6.52 -28.9 31.48 10.26 -17.65 0 -24.03 -3532 14.22 10 lololololo ole 1 1 0 1 0 -24.52 3.27 2.88 1.48 0 6.46 -20.67 6.07 29.63 1.75 NO solo 0 9.23 DataFile 1 Sheet2 Sheet3 Recover Unsaved Workbooks. We were able to save changes to on G9 Ax & fx A B D T E 1.75 9.23 7.77 -50.81 -8.38 32.77 14,8 1 1 0 0 0 0 0 0 0 0 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 254 265 266 267 268 269 270 271 272 273 274 275 10.31 24.01 34.24 12.56 0 - 10.01 25.12 18.79 -10.25 0 11.99 11.42 2.45 36.31 0 31.84 8.26 9.66 -11.83 -36.03 22.45 -8.92 2.78 -0.56 -10.55 16.72 -19.74 -59.01 -58.38 -36.41- -6.77 30.06 0 0 1 0 0 0 1 1 0 0 0 9.89 + -10.14 -17.9 0 1 275 One of the theories regarding initial public offering (IPO) pricing is that the initial return y (the percentage change from offer to open price) on an IPO depends on the price revision (the percentage change from pre-offer to offer price). Another factor that may influence the initial return is a high-tech dummy variable that equals 1 for high-tech firms and otherwise. The following table shows a portion of the data on 264 IPO firms from January 2001 through September 2004 Initial Return 37.08 10.92 Price Revision -8.01 - 30.82 High-Tech 0 0 8.26 -17.90 1 Dricture Click here for the Excel Data Elle 3-1. Estimate y - Ho + B* + Bzd " where the dummy variable d equals 1 for firms that are high-tech. (Round your answers to 2 decimal places.) Initial Return 30 Price Revision High-Tech 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.) Predicted return of a high-tech firm 2-3. 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 return of a non high-tech firm b-1. Estimate y - Be + Bx + f2d + e where the dummy variable d equals 1 for firms that are not high-tech (Negative values should be indicated by a minus sign. Round your answers to 2 decimal place.) Inital Return Price Revision High-Tech b-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.) Predicted the initial return of a high-boch firm b-3. Find the corresponding predicted return of a firm that is and final answer to 2 decimal places.) thigh-tech (Round coefficient estimates to at least 4 decimal places Predicted return of a non high-tech firm c-1. In the high-tech models, determine if the dummy variable is significant at the 5% level. The dummy variable is significant since the p-value is less than 0.05. The dummy variable is not significant since the p value is more than 0.05. The dummy variable is significant since the p value is more than 0.05 The dummy variable is not significant since the p value is less than 0.05. COM c-2. In the not high-tech models, determine if the dummy variable is significant at the 5% level. The dummy variable is significant since the p-value is less than 0.05. The dummy variable is not significant since the p value is more than 0.05. The dummy variable is significant since the pvalue is more than 0.05. The dummy variable is not significant since the pvalue is less than 0.05. Recover Unsaved Workbooks. We were able to save changes to one or more file G9 A x V fx B C D 10 1 Initial Return 2 37.08 3 10.92 4 -5.2 5 32.53 6 0 7 10.72 8 19.57 9 0 10 0 11 0 12 -31.71 13 1.98 14 -6.92 15 8.67 16 -7.19 41.66 -15.57 19 15.52 20 4.34 21 10.91 22 38.72 123 -10.9 24 16.88 25 15.99 26 9.73 22 6.53 28 0.57 29 0 30 4.71 31 18.86 10.95 33 8.18 16.82 35 6.8 35 1.93 37 9.7 20.31 7.84 3409 58.83 0.7 Price Revision High-tech -8.01 0 -30.82 0 4.29 0 -55.33 1 -18.02 0 1 0 1 -26.63 0 -9.85 0 -7.06 0 -7.37 0 17.49 0 6.45 0 14.21 1 -29.92 1 41.91 1 2.87 1 -50.94 1 -17.3 0 23.84 1 -6 0 5.19 0 56.69 1 -0.28 0 0.76 1 -36.96 1 9.04 1 33.52 7.02 0 1 18 olo 0 1 -18.71 -30.93 0.63 0 -24.27 1 ol 0 1 0 0 9.87 16.82 3.46 7.2 lol 0 43 0 0 1 0 44 45 46 47 48 11.51 22.12 7.99 0 0 0 13.58 19.63 18.82 0 -21.02 -22.24 -17.75 3.69 0 6.26 6.43 28.34 -29.79 -37.91 -11.16 5.27 -0.42 -21.24 7:07 1 0 1 1 0 49 50 51 52 53 54 55 56 57 58 59 1 1 0 0 0 6.24+ 1 0 0 60 61 162 53 64 65 66 67 68 69 70 0.46 -19.13 18.24 0 5.61 0 9.04 24.8 17 10.93 17.97 O 4.27 14.64 19.57 -4.46 13.64 10.79 14.35 6.44 7.42 -7.17 27.3 1 O 0 0 17.85 25.94 6.82 48.97 -5.59 4.21 3.02 54.43 -40.01 3.93 0 1.59 -7.11 10.26 HON 0 0 0 1 0 0 1 21.65 72 23 74 75 76 77 78 79 80 1 1 1 6.64 4.62 4.34 0 21.32 26.66 49.03 14.59 0 -19.14 2.6 23.19 6.83 13.63 9.06 35.88 -53 62 1 82 33 0 1 B D F 83 1 0 0 14.69 44.57 -2.52 11.56 -17.12 0 3.96 84 85 86 87 88 89 0 0 0 0 0 1 90 91 0 0 1 12.65 -19.31 16.45 25.45 15.23 31.36 0 0 -53.62 7.72 -48.81 -10.53 0 -31.62 -6.96 44.07 -5.33 48.46 22.89 1.56 0 32.64 -9.7in -11.69 0 11.39 -17.45 -1.15 33.65 3.21 -39.91 2.64 -2.2 13.89 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 0 1 1 0 0 0 0 0 1 0 1 19.95 -29.35 7.6 -6.04 22.72 4.43 14.71 0.05 -3.99 -10.11 23.47 -1.14 -3.63 -5.74 8.95 -2.9 0 0 8.09 50.31 1 0 0 0 0 0 1 112 1 3.21 6.03 0.64 -12.52 0 -11.5 -15.84 23.81 -40.62 18.14 0 116 117 g 1 1 36.74 22 33 1 G9 X & fc B A D C E 40.34 -2.17 68.86 11.4 0.01 0 -20.49 0 S1.08 0 1 0 1 0 0 0 0 1 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 O 0 1 1 1 0 1 1 14.18 -5.46 10.77 18.82 -7.63 4.22 0 3.87 1 -23.7 -24.42 -22.29 -21.51 3.03 -5709 14 16 -16.38 5.34 -5.21 20.32 -8.4 13.56 28.68 -12.67 -16.11 -59.15 0 2.6 -35.56 -26.53 143.01 0 42.67 9.31 12.67 26.99 3.67 O 2.45 6.88 18.36 0 0 0 0 1 0 142 143 104 0 4.27 18.57 -1.41 0 50.99 12.87 0 -3.02 19.37 -11.65 1:43 4.36 3.9 13.41 -0.48 -8.14 11.62 16.89 0 3.73 5.67 -3.22 15.71 20.57 -10.94 3.26 -13 44 3.46 14:56 4.07 2.83 0 1 1 0 265 46 147 18 149 150 151 152 153 150 55 156 152 155 1 16 0 1 1 1 0 1 1 0 0 0 16 1 . G9 x & fc E D F G A B 26.49 13.29 0 1 1 1 . 0 0 17.84 22.23 0 5.28 -7.83 0 0 0 0 1 1 1 1 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 172 178 179 180 181 182 183 1.84 185 286 187 188 189 190 191 1 16.25 -16.76 -11.15 -4.74 41.15 16.34 2.33 10.47 0 5.21 -36.7 -17.03 12.23 -31.66 44.61 -35.84 1.8 -14.06 -9.79 43.79 -5.83 22.14 12.02 -2.2 -2.48 -16 -1.38 8.45 0 0 1 1 0 15.87 31.81 -2.94 32.63 7.9 21.12 4.66 4.96 4.15 9.7 10.56 6.23 0 1.36 17-3 0 29.95 -3.42 3:33 -17.79 5.72 1.55 -4.99 26.76 -6.32 4102 0.57 10.47 -9.39 7.04 0 0 0 0 0 1 1 192 193 194 195 196 197 -10.24 -15.57 0 -2.51 -12.24 0 -18.42 -13.56 25.39 0 1 1 0 1 0 O 0 18 0 0 200 201 202 DO 10.5 15.36 lololo 5.29 B C 1.81 -37.31 0 17.19 3.33 8.94 -17.72 0 -3.33 12.65 3.03 0 1 0 0 0 0 1 1 0 lololol -21.53 -3.85 34.24 -31.38 0 24.5 10 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 223 222 228 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 2012 242 243 264 1 1 0 1 0 0 o 0 1 0 SA 15.64 6.41 29.37 0 7.01 -15.41 0 11.8 12.88 39.79 12.84 4.33 1.51 10.5 124.59 7.87 -17.96 -0.06 4.72 -8.77 4.06 -20.25 -1.39 3.05 4.17 30.26 7.66 26.51 86.75 -16.7 -15.75 -3.97 24.39 -34.15 35.45 -7.25 0 0 11.87 19.9 13.13 -0.89 6.52 -28.9 31.48 10.26 -17.65 0 -24.03 -3532 14.22 10 lololololo ole 1 1 0 1 0 -24.52 3.27 2.88 1.48 0 6.46 -20.67 6.07 29.63 1.75 NO solo 0 9.23 DataFile 1 Sheet2 Sheet3 Recover Unsaved Workbooks. We were able to save changes to on G9 Ax & fx A B D T E 1.75 9.23 7.77 -50.81 -8.38 32.77 14,8 1 1 0 0 0 0 0 0 0 0 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 254 265 266 267 268 269 270 271 272 273 274 275 10.31 24.01 34.24 12.56 0 - 10.01 25.12 18.79 -10.25 0 11.99 11.42 2.45 36.31 0 31.84 8.26 9.66 -11.83 -36.03 22.45 -8.92 2.78 -0.56 -10.55 16.72 -19.74 -59.01 -58.38 -36.41- -6.77 30.06 0 0 1 0 0 0 1 1 0 0 0 9.89 + -10.14 -17.9 0 1 275
