The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of s

Question

The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of company's stocks sold (x_1), and the volume of exchange (in millions) on the New York Stock Exchange (x_2) are shown below. Excel was used to determine the least-squares regression equation. Part of the computer output is shown below. Interpret the coefficient for volume of exchange on NYSE (x_2). For every additional number of share of stock purchased, the price of Rawlston, Inc stock increases by $1.57, holding number of shares constant. For every one unit increase in volume of NYSE, the average price of Rawlston. Inc stock decreases by $1.57, holding number of shares constant. For every additional number of share of stock purchased, the price of Rawlston. Inc stock decreases by $1.57, holding volume of exchange on the NYSE constant. For every one unit increase in volume of NYSE, the average price of Rawlston, Inc stock increases by $1.57, holding number of shares constant.

Explanation / Answer

Answer with reasoning in detail:

First, see the -ive sign in the coefficient. This means an increase in unit X2 means
decrease of 1.57

So , options A and D are wrong.

This is given x1 is kept contant , or no. of shares is kept constant
This makes B wrong.

Hence, C is the right interpretation

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