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The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of company's stocks sold (x1), and

The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of company's stocks sold (x1), and the volume of exchange (in millions) on the New York Stock Exchange (x2) are shown below.

Day (y) (x1) (x2) 1 87.50 950 11.00 2 86.00 945 11.25 3 84.00 940 11.75 4 83.00 930 11.75 5 84.50 935 12.00 6 84.00 935 13.00 7 82.00 932 13.25 8 80.00 938 14.50 9 78.50 925 15.00 10 79.00 900 16.50 11 77.00 875 17.00 12 77.50 870 17.50 Excel was used to determine the least-squares regression equation. Part of the computer output is shown below. ANOVA df SS MS F Significance F Regression 2 118.8474 59.4237 40.9216 0.0000 Residual 9 13.0692 1.4521 Total 11 131.9167 Coefficients Standard Error t Stat P-value Intercept 118.5059 33.5753 3.5296 0.0064 (x1) -0.0163 0.0315 -0.5171 0.6176 (x2) -1.5726 0.3590 -4.3807 0.0018

Use the output shown above and write an equation that can be used to predict the price of the stock.

Interpret the coefficients of the estimated regression equation that you found in Part a.

At 95% confidence, determine which variables are significant and which are not. Please explain.

If in a given day, the number of shares of the company that were sold was 94,500 and the volume of exchange on the New York Stock Exchange was 16 million, what would you expect the price of the stock to be?

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