What was the highest annual return for apple

Assignment Help Basic Statistics

Reference no: EM131309446

Exercises -

8.1- For each of the following pairs, explain why you believe that they are positively related, negatively related, or essentially unrelated. If they are related, identify the dependent variable.

a. The cost of constructing a house and its market price.

b. The winter price of corn and the number of acres of corn planted by Iowa farmers the following spring.

c. The price of steak and the amount purchased by a college dining hall.

d. The price of gasoline and sales of large cars.

e. The number of wins by the New York Yankees and the price of tea in China.

8.2- Figure 8.13 is a scatter diagram of the annual rates of return on Apple and Microsoft stock during the years 1998-2008:

a. What was the highest annual return for Apple?

b. What was the lowest annual return for Microsoft?

c. Was the average annual return higher for Apple or for Microsoft?

d. Was there a greater dispersion in Apple or Microsoft returns?

e. Were Apple and Microsoft stock returns positively related, negatively related, or unrelated?

8.3- Use the data in Table 1.2 to calculate least squares estimates of the relationship between income and spending. What is the estimated slope?

Table 1.2 Family Income and Spending, 1935-1936 [12]
Income Range ($)	Average Income ($)	Average Spending ($)
< 500	292	493
500-999	730	802
1000-1499	1176	1196
1500-1999	1636	1598
2000-2999	2292	2124
3000-3999	3243	2814
4000-4999	4207	3467
5000-10,000	6598	4950

8.4- Use the data in Table 1.6 to estimate a simple linear regression model where the dependent variable is 2003 prices and the explanatory variable is the hard drive size.

Table 1.6 Prices of Hard Drives of Various Sizes [16]
Size (Gigabytes)	2003	2004	2005	2006	2007
80	$155	$115	$85	$80	$70
120	$245	$150	$115	$115	$80
160	$500	$200	$145	$120	$85
200	$749	$260	$159	$140	$100

8.5- Use the data in Table 1.6 to estimate a simple linear regression model where the dependent variable is 2007 prices and the explanatory variable is the hard drive size.

8.6- Use the data in Table 1.6 to estimate a simple linear regression model where:

a. The dependent variable is the price of an 80-GB hard drive and the explanatory variable is the year.

b. The dependent variable is the natural logarithm of the price of an 80-GB hard drive and the explanatory variable is the year.

Which of these equations seems to describe the data better? Explain your reasoning.

8.9- A least squares regression was used to estimate the relationship between the dollar price P of 45 used 2001 Audi A4 2.8L sedans with manual transmission and the number of miles M the car had been driven:

P^{^} = 19,958 - 0.0677M, R² = 0.70

(2,553) (0.0233)

The standard errors are in parentheses.

a. Does the value 16,958 seem reasonable?

b. Does the value -0.0677 seem reasonable?

c. Does the value 0.70 seem reasonable?

d. Is the estimated relationship between M and P statistically significant at the 5 percent level?

e. Should the variables be reversed, with M on the left-hand side and P on the right-hand side? Why or why not?

Textbook - Essential Statistics Regression, and Econometrics Second Edition by Gray Smith.

Reference no: EM131309446

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len1309446

12/12/2016 7:02:34 AM

In this assignment I need solution for question 8.1 to 8.6 and 8.9 from pages 240 and 241 of the textbook. Total 7 questions, very simple ones, Use the data to calculate least squares estimates of the relationship between income and spending. What is the estimated slope?

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