I have to intrepret the relation between Home Depot closing price and T Bill rat
ID: 3130942 • Letter: I
Question
I have to intrepret the relation between Home Depot closing price and T Bill rate using excel. My dat points are:Closing Price 40.38 38.73 41.37 42.1 41.29 36.71 35.37 34.69 34.34 37.14 37.22 39.92 39.79 41.36 38.71 38.02 38.43 39.21 39.2 36.19 36.51 34.22 29.34 29.49 25.37 28.4 25.88 27.67 27.98 And T Bill Rate 4.31 4.52 4.62 4.72 4.82 4.97 5.06 4.97 4.89 4.92 4.95 4.88 4.95 4.96 4.89 4.86 4.78 4.76 4.83 4.38 4.05 4.01 3.46 3.23 2.75 2.04 1.48 1.55 1.82 I have tried to do this using Excel Data Analysis and am confused as to the proper way to do it. Also when I run Regression I get significance f as 2.02019E-09 and a p value for intercept of 4.26218E-11 and p value for t bill rate of 2.02019E-09. I do not understand this. I am an older person who is taking this course to learn more about statistics for my business. I would appreciate any help.
Explanation / Answer
Here is the output generated by the excel:
I took T Bill rate as indepepdent variable and Closing price as dependnet variable.
ANOVa table shows that P-value of F test is 2.02019E-09 which is veru samll. That is model is significant. Means there is significant relationship between the variables Home Depot closing price and T Bill rate. Also the correlation coeffcient is 0.861 which shows that there is strong , positive relationship between the variables.
SUMMARY OUTPUT Regression Statistics Multiple R 0.861228468 R Square 0.741714475 Adjusted R Square 0.732148344 Standard Error 2.623458453 Observations 29 ANOVA df SS MS F Significance F Regression 1 533.6405613 533.6405613 77.53547482 2.02019E-09 Residual 27 185.8284249 6.882534254 Total 28 719.4689862 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 19.78088603 1.871342523 10.57042513 4.26218E-11 15.94120838 23.62056369 T Bill Rate 3.831140953 0.435088801 8.805423035 2.02019E-09 2.938412484 4.723869423