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Mr. William Profit is studying companies going public for the first time. He is particularly interes

Question: Mr. William Profit is studying companies going public for the first time. He is particularly interested in the relationship between the size of the offering and the price per share. A sample of 15 companies that recently went public revealed the following information.

Company	x (Size, in $ millions)	y (Price per share)
1	9	10.8
2	94.4	11.3
3	27.3	11.2
4	179.2	11.1
5	71.9	11.1
6	97.9	11.2
7	93.5	11
8	70	10.7
9	160.7	11.3
10	96.5	10.6
11	83	10.5
12	23.5	10.3
13	58.7	10.7
14	93.8	11
15	34.4	10.8

(a) Determine the regression equation.

(b) Determine the coefficient of determination. Do you think Mr. Profit should be satisfied with using the size of the offering as the independent variable?

Price: $2.99

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