Question

The data in the accompanying table represent the rate of return of a certain company stock for 11​ months, compared with the rate of return of a certain index of 500 stocks. Both are in percent. Complete parts ​(a) through ​(d) below.

Graph:

Month Rates of return of the index, x Rates of return of the company stock, y
Apr-18   4.33    3.28
May-18   3.35   5.09
Jun-18   -1.78   0.54
Jul-18   -3.20   2.88
Aug-18   1.29   2.69
Sept-18   3.58   7.41
Oct-18   1.48   -4.83
Nov-18   -4.40   -2.38
Dec-18   -0.86   2.37
Jan-19   -6.12   -4.27
Feb-19   -3.48   -3.77

​(a) Treating the rate of return of the index as the explanatory​ variable, x, use technology to determine the estimates of beta 0β0 and beta 1β1.

The estimate of beta 0β0 is ?. ​(Round to four decimal places as​ needed.)

The estimate of beta 1β1 is ?. ​(Round to four decimal places as​ needed.)

Determine the​ P-value for this hypothesis test.

​P-value equals=? ​(Round to three decimal places as​ needed.)

(c) Assuming the residuals are normally​ distributed, construct a​ 90% confidence interval for the slope of the true​ least-squares regression line.

Lower​ bound: ?​(Round to four decimal places as​ needed.)

Upper​ bound: ? ​(Round to four decimal places as​ needed.)

(d) What is the mean rate of return for the company stock if the rate of return of the index is 3.45​%?

The mean rate of return for the company stock if the rate of return of the index is 3.45​% is ?%. ​(Round to three decimal places as​ needed.)

Answer 1