Reference no: EM132827040

Question 1. The file Data.xlsx (available on the companion website) contains monthly returns for the Standard & Poor's stock index and for Dell stock. The beta of a stock is defined as the slope of the least-squares line used to predict the monthly return for a stock from the monthly return for the market. Use this file to perform the following exercises:
a. Estimate the beta of Dell.
b. Interpret the meaning of Dell's beta.
c. If you believe a recession is coming, would you rather invest in a high-beta or low-beta stock?
d. During a month in which the market goes up 5 percent, you are 95 percent sure that Dell's stock price will increase between which range of values?

Question 2. The file Housedata.xlsx (available on the companion website) gives the square footage and sales prices for several houses in Bellevue, Washington. Use this file to answer the following questions:
a. You plan to build a 500-square-foot addition to your house. How much do you think your home value will increase as a result?
b. What percentage of the variation in home value is explained by the variation in the house size?
c. A 3,000-square-foot house is listed for $500,000. Is this price out of line with typical real estate values in Bellevue? What might cause this discrepancy?

Question 3. The file Parking.xlsx contains the number of cars parked each day both in the outdoor lot and in the parking garage near the Indiana University Kelley School of Business. Find and interpret the correlation between the number of cars parked in the outdoor lot and in the parking garage.

Textbook: - Marketing Analytics: Data-Driven Techniques with Microsoft Excel Published by John Wiley & Sons, Inc

Attachment:- Marketing Analytics.rar