Stats (I need 100% accurate answer)
Multiple Regression: Read the case Compass= Maritime Services, LLC: Valuing Ships (Harvard Business School N9-211-014)= . Take the perspective of Basil Karatzas and use statistical methods to= determine the offering price of Bet Performer. The prices of recent sales = are in data file Q4_Compass.xls.
a) (15 points) Determi= ne the relationship between Sale Price and the three factors (Age at Sale, = Dead-Weight Tons, and Tralling 1-Year Average Monthly Baltic Dry Capesize I= ndex) using three separate Simple Regressions. Predict the price of = Bet Performer based on the three models. How useful are these predictions a= nd why?
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Order Paper Nowb) (10 points) Determi= ne the relationship between Sale Price and the same three factors using a M= ultiple Linear Regression. Explain the model (the meaning of the coefficien= t and statistical significance). Predict the price of Bet Performer based o= n the Multiple Regression model.
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c) (10 points) Compari= ng the predictions based on Simple Regressions and Multiple Regression, whi= ch one will you base your decision on? Why?
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d) (5 points) Based on= his experience, Basil suspected that due to easy financing, the transactio= n price of ships sold after June 2007 might be higher than comparable ships= sold earlier. How can he incorporate this into the model?
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e) (5 points) Basil al= so suspects that the relationship between AGE and SALE PRICE is not linear.= Can you test that?
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f) (5 points) Another = thing Basil noticed is that buyers after June 2007 also prefer newer ships.= How can you modify the above model to test that?