Question

In: Statistics and Probability

(k) Last month, the TSE Index's monthly rate of return was 1.5%. This is, at the...

(k) Last month, the TSE Index's monthly rate of return was 1.5%. This is, at the end of last month the value of the TSE Index was 1.5% higher than at the beginning of last month. With 95% confidence, find the last month's rate of return on Acme Oil and Gas stock.

AcmeRofReturn TSERofReturn
0.00885 -0.023314
0.035088 0.041661
-0.016949 0.027904
0.043103 0.054967
0.126722 0.069449
-0.05379 -0.015124
0.108527 0.029879
-0.076923 0.007837
0.017677 -0.052583
0.131514 0.021151
0.052632 0.063535
-0.066667 0.00864
0.109375 0.063966
-0.034205 -0.040215
0.05625 0.060856
0.143984 -0.028918
-0.124138 -0.050605
0.023622 0.027862
-0.003846 0.000113
0.019305 0.055311
-0.041667 0.061654
-0.047431 0.013893
0.03112 -0.009909
-0.050302 -0.030256
-0.082627 -0.062824
-0.307159 -0.253262
0.276667 0.014857
0.031332 0.095704
-0.101266 0.021373
-0.084507 0.021904
0.107692 0.036201
-0.1 -0.066037
0.089506 0.043211
0.124646 0.059434
-0.093199 -0.025271
0.116667 0.024004
0.104478 0.010021
0.011261 -0.015812
-0.008909 -0.001881
-0.053933 0.041137
-0.021378 0.035491
-0.007282 0.105841
0.056235 0.007942
-0.055556 0.07097
0.036765 0.035234
0.179669 -0.012279
0.146293 -0.010335
-0.033217 0.092537
0.034358 0.020263
0.092657 0.074823
0.072 -0.083831
-0.044776 -0.076596
0.0875 -0.092932
0.096264 0.012734
-0.083879 0.041643
0.03176 -0.15388
-0.017194 -0.061872
0.200621 0.005052
-0.009401 0.063128

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Expert Solution

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.348697232
R Square 0.121589759
Adjusted R Square 0.106179053
Standard Error 0.089952736
Observations 59
ANOVA
df SS MS F Significance F
Regression 1 0.063841521 0.063842 7.889954 0.006797419
Residual 57 0.461215204 0.008091
Total 58 0.525056725
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 0.016647937 0.011773929 1.413966 0.162811 -0.006928949 0.040224824
X Variable 1 0.538690995 0.191779633 2.808906 0.006797 0.154658904 0.922723086

orchestra answered 2 years ago
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