Question

In: Statistics and Probability

Amazon Walmart Amazon: 19.1;​ 24.5; 32.4;​ 48.1; 61.1;​ 74.5; 89.0;​ 107.9; 136.0; 177.9. Revenue Year Time...

Amazon Walmart
Amazon: 19.1;​ 24.5; 32.4;​ 48.1; 61.1;​ 74.5; 89.0;​ 107.9; 136.0; 177.9. Revenue Year Time Revenue Year Time
Walmart: 402.2;​ 406.1; 420.0;​ 445.0; 467.2;​ 474.5; 483.5;​ 480.0; 482.2; 496.8. 19.1 2008 1 402.2 2008 1
24.5 2009 2 406.1 2009 2
Using the regression tool in Excel​ (with a constant​ term), in​ 2021 32.4 2010 3 420 2010 3
48.1 2011 4 445 2011 4
​Amazon's stock price would be predicted to equal​ Walmart's stock price in approximately the year 61.1 2012 5 467.2 2012 5
74.5 2013 6 474.5 2013 6
89 2014 7 483.5 2014 7
107.9 2015 8 480 2015 8
136 2016 9 482.2 2016 9
177.9 2017 10 496.8 2017 10
Amazon Walmart
Amazon: 19.1;​ 24.5; 32.4;​ 48.1; 61.1;​ 74.5; 89.0;​ 107.9; 136.0; 177.9. Revenue Year Time Revenue Year Time
Walmart: 402.2;​ 406.1; 420.0;​ 445.0; 467.2;​ 474.5; 483.5;​ 480.0; 482.2; 496.8. 19.1 2008 1 402.2 2008 1
24.5 2009 2 406.1 2009 2
Using the regression tool in Excel​ (with a constant​ term), in​ 2021 32.4 2010 3 420 2010 3
48.1 2011 4 445 2011 4
​Amazon's stock price would be predicted to equal​ Walmart's stock price in approximately the year 61.1 2012 5 467.2 2012 5
74.5 2013 6 474.5 2013 6
89 2014 7 483.5 2014 7
107.9 2015 8 480 2015 8
136 2016 9 482.2 2016 9
177.9 2017 10 496.8 2017 10

Solutions

Expert Solution

Amazon:

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.968637804
R Square 0.938259195
Adjusted R Square 0.930541594
Standard Error 13.59622218
Observations 10
ANOVA
df SS MS F Significance F
Regression 1 22473.82694 22473.82694 121.5739497 4.07535E-06
Residual 8 1478.858061 184.8572576
Total 9 23952.685
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -13.72666667 9.287987952 -1.477894538 0.177690119 -35.14480529 7.691471959 -35.14480529 7.691471959
Time 16.50484848 1.496894796 11.02605776 4.07535E-06 13.05300289 19.95669408 13.05300289 19.95669408

Y = -13.7267 + 16.5048 * X

For year 2021, X = 14

Y = -13.7267 + 16.5048 * X

Y = -13.7267 + 16.5048 * 14

Y = 217.3405

Walmart :

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.950459254
R Square 0.903372794
Adjusted R Square 0.891294393
Standard Error 11.50133787
Observations 10
ANOVA
df SS MS F Significance F
Regression 1 9893.598818 9893.598818 74.79241778 2.48183E-05
Residual 8 1058.246182 132.2807727
Total 9 10951.845
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 395.52 7.856909524 50.34040405 2.68508E-11 377.4019341 413.6380659 377.4019341 413.6380659
Time 10.95090909 1.266255624 8.648260969 2.48183E-05 8.030918385 13.8708998 8.030918385 13.8708998

Y = 395.52 + 10.9509 * X

If X = 14

Y = 395.52 + 10.9509 * 14

Y = 548.8326

For Amazon If Year is 2041, X = 34 and Y = 547.4365

​Amazon's stock price would be predicted to equal​ Walmart's stock price in approximately the year 2041


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