1. Given are five observations for two variables x and y
xi yi
1 3
2 7
3 5
4 11
5 14

a. Develop a scatter diagram for these data.
b. What does the scatter diagram in part (a) indicate about the relationship between the two variables? *La relación entre ambas es una muy concreta y aproximada. Por lo que en múltiple R es de 92 %. Por lo que se acepta la Hipótesis nula. Además podemos concluir que tiene una fuerte correlación positiva.

c. Try to approximate the relationship between x and y drawing a straight line through the data. d. Develop the estimated regression equation by computing the values of b0 and b1 using equations : Y=2.6x+0.2

e. Use the estimated regression equation to predict the value of y when, x =4. Y=2.6(4) + 0.2
= 10.4 + 0.2
Y = 10.6
The estimated regression equation for (exercise 1) data is: y= .20+2.60x

a. Compute the SSE,SST, and SSR, using the following equations: SSE= (yi-yi)2
SSE = 12.40
SST= (yi-yi)2
SST = 80
SSR= (yi-yi)2
SSR = 67.6
b. Compute the coefficient of correlation r
0.845 = + 0.9192

c. Compute the coefficient of determination r2

r2 = 67.6/80 = 0.845

Consider the following hypothesis test:
H0: β1 = 0
Ha: β1 ≠ 0
a. Compute the value of the test statistic.
4.044
b. What is the p value?
0.0272
c. At = .05, what is your conclusion?
RHo
d. What is the rejection rule using the critical value? What is your conclusion? *Se rechaza la hipótesis nula ya que el P value es menor que alfa .05

2. Given are five observations for two variables x and y

xi yi
3 55
12 40
655
20 10
14 15
f. Develop a scatter diagram for these data.
g. Try to approximate the...

...Multiple Regression Model for
Market Capitalisation
Duvan Lopez (Victoria University)
Yen Nguyen (Victoria University)
Meutia Iqbal (Victoria University)
Bayu Suropati (Victoria University)
ABSTRACT
Over the years, the importance of market capitalisation has been well acknowledged to value a certain company for its shareholders, future acquirers, and generally anyone related with the company. There are various methodologies that have been used to analyse market capitalisation, such as cash flow based analysis, real options and regression analysis. In this study, we used multiple regression analysis to determine which of the numerous important factors yield the best model for market capitalisation as the multiples approach to company valuation. The aim of this paper is to back-testing Ko’s (2009) work in his research paper, Multiple Regression Model For Market Capitalization, using the same, exact methodology he used. Although our work refers to what has been done by Ko (2009) in we found some differences with him in terms of the independent variables that have the most statistically significant relationship with the dependent variable, market capitalisation as we did not use the same number of companies that he used.
INTRODUCTION
In the business world, it is well understood that the main goal of companies is to earn profit as high as possible. This is why every company need to be aware of its stock prices in the relation to profit. Market capitalisation is...