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You believe that the price of Zoom Videoconferencing stock and the price of American Airlines stock will move in opposite directions. In order to test

  1. You believe that the price of Zoom Videoconferencing stock and the price of American Airlines stock will move in opposite directions. In order to test this relationship, we do a simple regression with the following variables: A - dependent variable : month end price of American Airlines stock Z - independent variable: month end price of Zoom Videoconferencing stock Data from April 2019 through December 2020 (21 observations) is available Based on the data, we compute the following: Var (Z) = 20927.702 Cov (A,Z) = -899.153 E(A) = 20.790 E(Z) = 187.530 Std Error of Estimate = 6.088 TSS = 1476.830
    1. Consider the equation At = b0 + b1 Zt + t Based on the numbers given above, complete the following table

Variable

Estimate

Std error

t-statistic

Slope b1

.00941

Constant b0

2.2088

R-square

N/A

N/A

F statistic

N/A

N/A

Are the coefficients (slope and/or constant) significant at the .05 level?

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