Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The complete question is attached as a screen shot, please refer. 2. Corporate share repurchase programs are often touted as a benet for shareholders. But
The complete question is attached as a screen shot, please refer.2. Corporate share repurchase programs are often touted as a benet for shareholders. But Robert Qabele, director of insider research for First Call! Thomson Financial, noted that many of these programs are undertaken solely to acquire stock for a company's incentive options for top managers. Across all companies, existing stock options in 1998 represented 6.2 per cent of all common shares outstanding. The following data show the number of shares covered by option grants and the number of shares outstanding for 13 companies Wpersonal Finance, January/February 2000) ___ Outstanding ( millions) X (millions) Y __ __ El a. Develop the estimated regression equation that could be used to estimate the number of shares of option grants Outstanding given the number of common shares outstanding. b. Use the estimated regression equation to estimate the number of shares of option grants outstanding for a company that has 150 million shares of common stock outstanding. c. Do you believe the estimated regression equation would provide a good prediction of the number of shares of option grants outstanding? Use r2 to support your answer. d. What is the value of sample correlation coefcient
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started