Question

The following attachment contains the values of two different financial stocks during a one month period. If a linear regression model is used to predict the SAMSUNG stock prices, what is the predicted SAMSUNG value to the nearest dollar when the ATT stock is $42 ?

Date	ATT	SAMSUNG
2/22/2017	41.59	1897.31
2/23/2017	41.95	1901.78
2/24/2017	42.36	1872.29
2/27/2017	41.82	1894.63
2/28/2017	41.79	1869.6
3/1/2017	42.04	1849.94
3/2/2017	42.07	1848.16
3/3/2017	42	1814.2
3/6/2017	41.95	1795.43
3/7/2017	41.88	1796.32
3/8/2017	41.77	1796.32
3/9/2017	41.93	1796.32
3/10/2017	42.34	1790.96
3/13/2017	42.36	1770.4
3/14/2017	42.09	1774.87
3/15/2017	42.59	1717.68
3/16/2017	42.43	1717.68
3/17/2017	42.61	1700.7
3/20/2017	42.41	1707.85
3/21/2017	42.08	1750.74
3/22/2017	41.65	1756.11

a.) 1817

b.) 1812

c.) 1803

d.) 1814

Answer 1

We can use here Excel for regression equation

Step 1) Enter data in Excel .

Step 2) Data >>Data analysis >>Regression >>Select y and x values separately >>Ok
Therefore, we have regression equation is,

SAMSUNG=-130.7345*ATT+7302.4127
          

Substitute here ATT= 42

=>SAMSUNG=-130.7345*42+7302.4127

=1811.56

  

Option b) is correct.