Given this table data, Estimate the following simple regression model: Return =
ID: 3219311 • Letter: G
Question
Given this table data, Estimate the following simple regression model: Return = 0 + 1 (P/E) +
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.605367
R Square
0.366469
Adjusted R Square
0.343843
Standard Error
13.79283
Observations
30
ANOVA
df
SS
MS
F
Significance F
Regression
1
3081.307
3081.307
16.19675
0.000393
Residual
28
5326.783
190.2422
Total
29
8408.09
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
Intercept
-38.6971
12.22885
-3.16441
0.003725
-63.7468
-13.6475
-63.7468
-13.6475
P/E
3.89574
0.968001
4.024519
0.000393
1.912879
5.878601
1.912879
5.878601
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.605367
R Square
0.366469
Adjusted R Square
0.343843
Standard Error
13.79283
Observations
30
ANOVA
df
SS
MS
F
Significance F
Regression
1
3081.307
3081.307
16.19675
0.000393
Residual
28
5326.783
190.2422
Total
29
8408.09
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
Intercept
-38.6971
12.22885
-3.16441
0.003725
-63.7468
-13.6475
-63.7468
-13.6475
P/E
3.89574
0.968001
4.024519
0.000393
1.912879
5.878601
1.912879
5.878601
Explanation / Answer
Regression equation from the excel output is
return=-38.6971+3.89574(P/E)
slope=3.89574
y intercept=-38.6971
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