The following data show Morningstar’s Fair Value estimate and the Share Price for 28companies. Fair Value is an estimate of a company’s value per share that takes into accountestimates of the...

The following data show Morningstar’s Fair Value estimate and the Share Price for 28companies. Fair Value is an estimate of a company’s value per share that takes into accountestimates of the company’s growth, profitability, riskiness, and other factors over the nextfive years (Morningstar Stocks 500, 2008 edition).Company Fair Value ($) Share Price ($)Air Products and Chemicals 80 98.63Allied Waste Industries 17 11.02America Mobile 83 61.39AT&T 35 41.56Bank of America 70 41.26Barclays PLC 68 40.37Citigroup 53 29.44Costco Wholesale Corp. 75 69.76Covidien, Ltd. 58 44.29Darden Restaurants 52 27.71Dun & Bradstreet 87 88.63Equifax 42 36.36Gannett Co. 38 39.00Genuine Parts 48 46.30GlaxoSmithKline PLC 57 50.39Iron Mountain 33 37.02ITT Corporation 83 66.04Johnson & Johnson 80 66.70Las Vegas Sands 98 103.05Macrovision 23 18.33Marriott International 39 34.18Nalco Holding Company 29 24.18National Interstate 25 33.10Portugal Telecom 15 13.02Qualcomm 48 39.35Royal Dutch Shell Ltd. 87 84.20SanDisk 60 33.17Time Warner 42 27.60a. Develop the estimated regression equation that could be used to estimate the SharePrice given the Fair Value.b. At the .05 level of significance, is there a significant relationship between the twovariables?c. Use the estimated regression equation to estimate the Share Price for a company thathas a Fair Value of $50.d. Do you believe the estimated regression equation would provide a good prediction ofthe share price? Use r2 to support your answer.