Determine the best simple regression model for estimating current stock price. Be sure that you indicate your reasoning for selecting the model for me, interpret and evaluate the model.
The best simple regression model for estimating the current stock price is:
Y = 19.93722 + .115048Profits
Reasoning
This was chosen as the best model because, according to the Rsquared values, profit is the most explanatory variable in the data set. Profit also had a p-value less than the given alpha of .10, so profit has a significant relationship with current stock price.
Interpretation
This equation means that for each additional dollar in profits, the current stock price will go up $0.115048. If profit is zero, the current stock price will be $19.93722. So, for example, if profit is $43.20, then:
Y = 19.93722 + .115048(43.20)
Y = 19.93722 + 4.9700736
Y = 24.9072936
So, if profit is $43.20, the current stock price would be $24.9072936.
Evaluation
Overall, the model is not a very......

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Title: Linear Programming A507 Mba
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Approximate Pages: 8 (250 words per double-spaced page)

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