The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in millions) are shown in the table. The equation of the regression line is y = 47.109x + 18,354.91. Complete parts a and b.
Issues, x: 417, 468, 678, 489, 486, 390, 51, 72, 188, 167
Proceeds, y: 17,708, 28,727, 43,105, 30,944, 65,435, 67,094, 20,826, 10,685, 31,771, 27,709
(a) Find the coefficient of determination and interpret the result.
(Round to three decimal places as needed.)
How can the coefficient of determination be interpreted?
The coefficient of determination is the fraction of the variation in proceeds that is unexplained and is due to other factors or sampling error. The remaining fraction of the variation is explained by the variation in issues.
The coefficient of determination is the fraction of the variation in proceeds that can be explained by the variation in issues. The remaining fraction of the variation is unexplained and is due to other factors or to sampling error.
(b) Find the standard error of estimate s_e and interpret the result.
(Round to three decimal places as needed.)
How can the standard error of estimate be interpreted?
The standard error of estimate of the issues for a specific number of proceeds is about s_e million dollars.
The standard error of estimate of the proceeds for a specific number of issues is about s_e million dollars.
