Math Problem Statement
Price = 28.9367 + 2.4050 dividend Reject H0 if t is not between ± 2.048 . The test statistic is 7.3271 . R2 0.6572 Correlation coefficient 0.8107 What is the 95% prediction interval of price per share if the dividend is $10? (Round your answers to 4 decimal places.) [ , ]
Solution
To compute the 95% prediction interval for the price per share when the dividend is $10, we can follow these steps based on the provided information:
Step 1: Use the Regression Equation
The regression equation is given as:
Substitute into the equation to find the predicted price:
Step 2: Calculate the Standard Error for Prediction
We will calculate the prediction interval. For this, we use the formula for the prediction interval:
Where:
- is the predicted value (52.9867),
- is the critical value from the t-distribution (2.048 given),
- is the standard error of the prediction.
We need to calculate the standard error first. Since specific information about the standard error or residual variance isn't provided in your data, I will proceed assuming you have access to it, or it's calculable from additional data.
Do you have the standard error of the regression (or standard error of estimate) available? If not, we can only complete the interval once that information is known.
Let me know if you need further clarification or details on how to proceed!
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Math Problem Analysis
Mathematical Concepts
Regression Analysis
Prediction Interval
Statistics
Formulas
Price = 28.9367 + 2.4050 * Dividend
Prediction Interval = ŷ ± t * SE(prediction)
Theorems
Prediction Interval Theorem
Suitable Grade Level
Undergraduate Level Statistics
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