WIR WWE TODA k Ch 7 Saved Help Save & E Cher One of the theories regarding initial public offering (IPO) pricing is that the initial returny (the percentage change from offer to open price) on an IPO depends on the price revision x (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 Price Return Revision High-Tech 37.83 10.29 -22.87 19.18 5.64 -28.83 1 Click here for the Excel Data File a-1. Estimate y = Bo + B1x + B2d + where the dummy variable d equals 1 for firms that are high-tech. (Round your answers to 2 decimal places.) Inbal Return 0.30 Price Revision +367 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 --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.) any admunden Ch 17 0 Waten A Saved Help Save & Exit Check 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 = Bo + B1x + B2d + 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.) Initial 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 retum 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 return of a non high-tech firm WIR WWE TODA k Ch 7 Saved Help Save & E Cher One of the theories regarding initial public offering (IPO) pricing is that the initial returny (the percentage change from offer to open price) on an IPO depends on the price revision x (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 Price Return Revision High-Tech 37.83 10.29 -22.87 19.18 5.64 -28.83 1 Click here for the Excel Data File a-1. Estimate y = Bo + B1x + B2d + where the dummy variable d equals 1 for firms that are high-tech. (Round your answers to 2 decimal places.) Inbal Return 0.30 Price Revision +367 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 --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.) any admunden Ch 17 0 Waten A Saved Help Save & Exit Check 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 = Bo + B1x + B2d + 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.) Initial 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 retum 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 return of a non high-tech firm
