QUESTION $1$

The following table provides the rate of returns on IBM and DELL from $2019$ to $2023$:

$\backslash$table$[[$Year$,2019,2020,2021,2022,2023],[$Return on IBM,$14,12,10,14,15],[$Return on DELL,$18,12,20,12,8]]$

Compute Return per Unit of Risk Criterion $($RRC$)$ for each stock;

Would you invest in IBM or DELL? Why?

QUBSIIOI $2$

The following table contains yearly data on theprice of beef $(\frac{\text{\$}}{K}g)$ and the quantity demanded for beef $(Kg)$ from $2021$ to $2023$:

$\backslash$table$[[$Year$,$P$,$Q$],[2021,1,6],[2022,2,4],[2023,3,2]]$

Where:

Q: quantity demanded for beef $($Lbs$)$;

P: price of beef $(\frac{\text{\$}}{L}bs).$

Consider the following simple linear regression: $Q={}_0+{}_{1}P.$

Use Ordinary Least Squares Method to estimate ${}_0$ and ${}_1$;

Interpret the slope;

Find the prediction line;

Compute the coefficient of determination; that is$,R^2$;

What would be the effect of a $$4$ increase in price on quantity demanded?

What would be the effect of a $$2$ decrease in price on quantity demanded?