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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
- 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
- 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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