A)   0.03 to 0.24

B)   0.0 to 0.21.

C)   −0.03 to 0.31.

Q7. If the number of analysts on NGR Corp. were to double to 4, the change in the forecast of NGR would be closest to?

A)   −0.035.

B)   −0.055.

C)   −0.019.

Q8. Based on a R² calculated from the information in Table 2, the analyst should conclude that the number of analysts and ln(market value) of the firm explain:

A)   18.4% of the variation in returns.

B)   84.4% of the variation in returns.

C)   15.6% of the variation in returns.

Q9. What is the F-statistic from the regression? And, what can be concluded from its value at a 1% level of significance?

A)   F = 5.80, reject a hypothesis that both of the slope coefficients are equal to zero.

B)   F = 17.00, reject a hypothesis that both of the slope coefficients are equal to zero.

C)   F = 1.97, fail to reject a hypothesis that both of the slope coefficients are equal to zero.

Q10. Upon further analysis, Turner concludes that multicollinearity is a problem. What might have prompted this further analysis and what is intuition behind the conclusion?

A)   At least one of the t-statistics was not significant, the F-statistic was not significant, and a positive relationship between the number of analysts and the size of the firm would be expected.

B)   At least one of the t-statistics was not significant, the F-statistic was significant, and an intercept not significantly different from zero would be expected.

C)   At least one of the t-statistics was not significant, the F-statistic was significant, and a positive relationship between the number of analysts and the size of the firm would be expected.

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