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Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.
Company Size ($ millions), X Price per Share, Y Company Size ($ millions), X Price per Share Y
1 9.0 10.8 9 160.7 11.32 94.4 11.3 10 96.5 10.63 27.3 11.2 11 83.0 10.54 179.2 11.1 12 23.5 10.35 71.9 11.1 13 58.7 10.76 97.9 11.2 14 93.8 11.07 93.5 11.0 15 34.4 10.88 70.0 10.7
Determine the regression equation.
Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the offering as the independent variable?
The heights of young women are approximately normal with mean 65 inches and standard deviation 2.5 inches.
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You are the general marketing manager of Ford Motor company. The CEO of the company asked you to assess the viability of producing alternative fuel automobiles (ex, ethanol).
The time it takes a student to finish a electronics test has a uniform distribution between 50 and 70 minutes.
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