Question: Dave Proffitt, as second year MBA student, is doing a study of companies going public for the first time. He is curious to see whether there is a significant relationship between the size of the offering (in millions of dollars) and the price per share.

1. Given the following Data, develop the estimating equation that best fits the data.

   Size ($ Millions)	Price ($)
   108.00	12.00
   4.40	4.00
   3.50	5.00
   3.60	6.00
   39.00	13.00
   68.40	19.00
   7.50	8.50
   5.50	5.00
   375.00	15.00
   12.00	6.00
   51.00	12.00
   66.0	12.00
   10.40	6.50
   4.00	3.00

2. Calculate the sample coefficient of determination. Should Dave use this regression equation for predictive purposes or search elsewhere for additional explanatory variables?

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document