Question

The following data represents the rate of return of the stock exchange​ (x) and the rate of return of a certain stock​ (y). The equation of the least squares regression line is

ModifyingAbove y with caret equals 0.9764 x plus 0.5975y=0.9764x+0.5975

and the standard error of the estimate is 2.3518. Answer parts​ (a)-(d).

x	0.23	0.94	1.40	3.86	3.25	minus−2.53	1.89	minus−1.91	minus−2.01	3.00	0.90
y	1.21	minus−0.57	minus−0.59	5.89	5.90	minus−2.58	0.06	1.78	0.06	5.79	minus−1.57

​(a) What is the mean rate of return for the stock if the rate of return of the​ S&P 500 is

3.78​%?

ModifyingAbove y with caret equalsy= 4.3%

​(Round to one decimal place as​ needed.)

​(b) Construct a​ 90% confidence interval about the mean rate of return of y if x equals 3.78 %.x=3.78%.

Lower Bound	equals=	nothing ​%
Upper Bound	equals=	nothing ​%

​(Round to one decimal place as​ needed.)

​(c) Predict the rate of return of the stock if the rate of return on the​ S&P 500 for a randomly selected month is

3.78​%.

ModifyingAbove y with caret equalsy= 4.3%

​% ​(Round to one decimal place as​ needed.)​(d) Construct a​ 90% prediction interval about the rate of return of y if

xequals=3.783.78​%.

Lower Bound	equals=	nothing ​%
Upper Bound	equals=	nothing ​%

​(Round to one decimal place as​ needed.)

Answer 1