When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at….

## Statistics paper

Theoretical relationship

a. Hours (H) refers to the number of hours preparing for the course per week. Existing literature shows that there is a positive relationship between grades and study Hours. Provide Reference.

b. Literature shows that sleep hours can be negatively related. Offer reference(s)

c. Others

Stage III: Descriptive Statistics………………………………………….. (20%)

a. Descriptive Statistics

First, compute the summary statistics for only the dependent variables to include:

. Mean

. Standard deviation

. Frequency distribution

. Pie chart

. 95% confidence interval for the mean of the dependent variable.

Second, compute the summary statistics between the dependent and the independent variables to include:

The correlation coefficient for each of the independent variables and the dependent variable.

Draw the scatter plot between the dependent (Y) and the independent ( X). Is the relationship positive or negative?

Stage IV: Inferential Statistics …………………………………………….. (20%)

a. Inferential Statistics

Here, run a regression between Y and X for the purpose of prediction. Show the regression line and then show the followings:

1. Run an OLS regression to test the significance of the theoretical signs expected

– What is the Y-intercept

– Compute the slope

– R square

– Is the explanatory variable significant at the 5% level? That is, what is the “t” value?

– Estimate the regression equation and graphically show the regression line

– Compute the p-value

Stage V: Summary and Conclusion …………………………………….. (15%)

Does the data provide evidence of the theoretical relationship between GPA (Y) and the independent variable ( X). Details on the expected relationship are covered in chapter 13 in the course.

Required: Organize, Visualize and Analyze your data as shown below:

2. Construct a frequency distribution or histogram for your variable

3. Graphically depict your data using two other methods studied (scatter plot/trend line/ histogram/pie chart).

4. Establish your hypothesis; that is the expected sign(s) between the dependent and independent variables. After you have established the various hypotheses, narrow down your research to only one hypothesis.

5. Run an OLS regression to test the significance of the theoretical signs expected

– What is the Y-intercept

– Compute the slope

– R square

– Is the explanatory variable significant at the 5% level? That is, what is the “t” value?

– Estimate the regression equation and graphically show the regression line

– Compute the p-value

6. Comments on your results – this is important so think carefully and write.