Business Business Statistics Problem 1385 How would one inte

Business Business Statistics, Problem 13.85, How would one interpret the beta value for GE from that? I gave aquired the Bo and B1 from PHStat but I am wondering, How would one get the beta value. This problem reffers to another problem in the book 13.49 which uses % weekly change in s & p 500 but I dont understand what to do after obtaining the Bo and B1 values.

Solution

Please post the data for better understanding of the question. However, since you are so confused with Regression, I will provide a general approach towards understanding the results:

Regression equation : Y = B0 + B1*X

B0 and B1 can be found out in the coefficients column of the regression results.

Interpretation:

B0: It is the value of the response variable (Y) when the value of regressor (X) is 0.

B1: It is the change in value of the response variable (Y) when the value of regressor (X) increases by 1 unit.