+1-316-444-1378

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=b) (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.=c) (10 points) Compari= ng the predictions based on Simple Regressions and Multiple Regression whi= ch one will you base your decision on? Why=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=e) (5 points) Basil al= so suspects that the relationship between AGE and SALE PRICE is not linear.= Can you test that=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
Attachments:

Categories: Uncategorized