Question

Find the standard error of estimate Se and interpret the result.

The number of initial public offer ngs o stock issued in a 10-year penod and the total proceeds o these offerings (in milions are shown in the able The equation of the regress on line is y = 47.871 + 18.224.89 Complete parts a and b 414 | 461 | 688 | 483 | 490 | 391 | 68 | 74 | 190 | 152 Proceeds, 19,111 28,676 42,627 32,395 66,522 65,152 20,938 11,722 30,478 27,917 (a) Find the coefficient of determination and interpret the result 291 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 and interpret the result. Round to three decimal places as needed.)

Answer 1

EXCEL output: SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.539242631 0.290782615 0.202130441 16493.09682 10 ANOVA Significance F MS Regression Residual Total 1 892243654.3 8.92E+08 3.280039 0.107711219 8 2176177941 2.72E+08 9 3068421596 Coefficients Standard Error tstat P-value Lower 95% U 18224.8851710415.94635 1.74971 0.118285-5794.330163 42244.10051 er 95% Intercept Issues 47.8713422 26.4323684 1.811088 0.107711 -13.08180859 108.824493 The value of the standard error of the estimate is 16493.097

Interpretation: Since the value of the standard error of the estimate is very high then there is a high distance that the observed value fall from the regression line.