Listed below is the selling price for a share of PepsiCo Inc. at the close of ea

Question

Listed below is the selling price for a share of PepsiCo Inc. at the close of each year from 1990 to 2012

77.5100

By how much has the stock price increased or decreased (per year) on average during the period?(Round your answer to 2 decimal places.)

Year Price Year Price Year Price Year Price 1990 12.9135 1996 29.0581 2002 42.2200 2008 54.7700 1991 16.8250 1997 36.0155 2003 46.6200 2009 60.8000 1992 20.6125 1998 40.6111 2004 52.2000 2010 65.3300 1993 20.3024 1999 35.0230 2005 59.8500 2011 66.3500 1994 18.3160 2000 49.5625 2006 62.0000 2012 68.4300 1995 27.7538 2001 48.6800 2007

77.5100

Explanation / Answer

Regression is computed by using year 1990=1.

Estimated regression line is

Price =12.012+2.6648*year

Calculate the selling price for the years 1995 and 2000. (Round your answers to 2 decimal places.)

For 1995, = 28.00  and for 2000, = 41.32

d.

Estimate the selling price in 2016. (Round your answer to 2 decimal places.)

For 2016, = 83.96.

e.

By how much has the stock price increased or decreased (per year) on average during the period?(Round your answer to 2 decimal places.)

Increase by 2.66

Regression Analysis

r²

0.910

n

23

r

0.954

k

1

Std. Error

5.805

Dep. Var.

Price

ANOVA table

Source

SS

df

MS

F

p-value

Regression

7,186.2296

1  

7,186.2296

213.25

1.80E-12

Residual

707.6693

21  

33.6985

Total

7,893.8989

22  

Regression output

confidence interval

variables

coefficients

std. error

   t (df=21)

p-value

95% lower

95% upper

Intercept

12.0120

2.5020

4.801

.0001

6.8087

17.2153

Year

2.6648

0.1825

14.603

1.80E-12

2.2853

3.0443

Predicted values for: Price

95% Confidence Intervals

95% Prediction Intervals

Year

Predicted

lower

upper

lower

upper

Leverage

6

28.0006377

24.6063943

31.3948811

15.4602979

40.5409776

0.079

11

41.3245048

38.7788223

43.8701874

28.9867686

53.6622411

0.044

27

83.9608795

77.7368144

90.1849447

70.3786035

97.5431556

0.266

Calculate the selling price for the years 1995 and 2000. (Round your answers to 2 decimal places.)

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