Question

In: Statistics and Probability

For a sample of 25 monthly observations, a financial analyst wants to regress the percentage rate...

For a sample of 25 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return ( X) of standard and Poor’s 500 Index. The following information is available: Σ??=??.????=? , Σ??=??.????=? , Σ???=???.????=? ,Σ???=???.????=? , Σ????=???.????=? a. Compute the sample correlation coefficient and interpret your answer. ( 3 marks) b. Test to determine the significance of the linear relationship between X and Y. ( 4 marks) c. Estimate the linear regression of Y on X, and interpret your results. Hence write the regression line and estimate Y when X is 8%.

Solutions

Expert Solution

ANSWER::

NOTE:: I HOPE YOUR HAPPY WITH MY ANSWER....***PLEASE SUPPORT ME WITH YOUR RATING...

***PLEASE GIVE ME "LIKE"...ITS VERY IMPORTANT FOR ME NOW....PLEASE SUPPORT ME ....THANK YOU

orchestra answered 1 year ago
Next > < Previous

Related Solutions

For a sample of 25 monthly observations, a financial analyst wants to regress the percentage rate...
For a sample of 25 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return ( X) of standard and Poor’s 500 Index. The following information is available: ∑?? = ??. ? ?? ?=? , ∑?? = ??. ? ?? ?=? , ∑?? ? = ???. ? ?? ?=? ,∑?? ? = ???. ? ?? ?=? , ∑???? = ???. ? ?? ?=?...
A sales analyst wants to determine whether there is difference in the mean monthly sales (in...
A sales analyst wants to determine whether there is difference in the mean monthly sales (in RM) of cosmetic company of six sales region in Johor. Several salespersons from each region are chosen and their monthly sales were recorded in Table Q2. Monthly sale (RM) Company A Company B Company C Company D Company E Company F 4250 3930 3960 4350 4150 3970 3980 4010 4020 4450 3890 4160 4020 4050 4130 3880 4568 4370 4130 4220 4350 4574 4480...
A researcher took a sample of 25 observations and calculated the correlation coefficient for X and...
A researcher took a sample of 25 observations and calculated the correlation coefficient for X and Y and found r = 0.68. Test at the 5% level the null hypothesis that there is no correlation between X and Y.
A simple random sample of 25 observations will be taken from a population that is assumed...
A simple random sample of 25 observations will be taken from a population that is assumed to be normal with a standard deviation of 37. We would like to test the alternative hypothesis that the standard deviation is actually more than 37. If the sample standard deviation is 40 or more, then the null hypothesis will be rejected (this called a decision rule). What significance level would this decision rule cause? If the population standard deviation is really 42, what...
1. A sample of 96 observations showed an average of 25 and a standard deviation of...
1. A sample of 96 observations showed an average of 25 and a standard deviation of 16. Construct the 90% confidence interval for the population mean. What is the lower limit of this interval? NOTE: WRITE YOUR ANSWER USING 4 DECIMAL DIGITS. DO NOT ROUND UP OR DOWN. 2. In a recent poll, from a sample of 140 likely voters, 65 answered they approve the way the president is handling his job. Compute the upper limit of the 95% confidence...
Bird’s data analyst wants to model the sample mean and sample variance of net revenue of...
Bird’s data analyst wants to model the sample mean and sample variance of net revenue of scooters. They plan to take a random sample of 25 of its scooters in Austin. They will record weekly net revenue brought in by each scooter. They decide it is reasonable to assume that weekly revenue of scooters is approximately normally distributed with a standard deviation of $50 (variance of 2,500 squared dollars). Find values a and b such that (i) the probability is...
A random sample of n = 25 observations is taken from a N(µ, σ ) population....
A random sample of n = 25 observations is taken from a N(µ, σ ) population. A 95% confidence interval for µ was calculated to be (42.16, 57.84). The researcher feels that this interval is too wide. You want to reduce the interval to a width at most 12 units. a) For a confidence level of 95%, calculate the smallest sample size needed. b) For a sample size fixed at n = 25, calculate the largest confidence level 100(1 −...
Bird’s data analyst wants to model the sample mean distance of scooter rides. They plan to...
Bird’s data analyst wants to model the sample mean distance of scooter rides. They plan to take a random sample of 41 scooter rides and to record the distance traveled on each ride (distance before the rider “releases” the scooter and the charge is processed). They decide it is reasonable to assume that the distribution of distances is approximately normal, but they don’t know the variance of the distribution. In the sample, the mean is 0.54 mile and the standard...
A quality analyst wants to construct a sample mean chart for controlling a packaging process. Each...
A quality analyst wants to construct a sample mean chart for controlling a packaging process. Each day last week, he randomly selected six packages and weighed each. The data from that activity appears below.                   Weight (in grams) Day Package 1 Package 2 Package 3 Package 4 Package 5 Package 6 Monday 23 22 23 24 23 21 Tuesday 23 21 19 21 24 20 Wednesday 20 19 20 21 19 20 Thursday 18 19 20 19 21 22 Friday...
A quality analyst wants to construct a sample mean chart for controlling a packaging process. He...
A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is in control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each: Day Weight (ounces) Monday 23 22 23 24 Tuesday 23 21 19 21 Wednesday 20 19 20 21 Thursday 18 19 20 19...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT