Question

In: Statistics and Probability

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

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.

TSERofReturn | AcmeofReturn

-0.53808

1.69139

-1.30760

0.62487

1.55857

1.29760

-0.61615

-1.96510

0.36527

-1.66576

-0.72767

0.72052

1.24631

3.02357

-0.72767

1.56045

0.36527

1.71184

-1.96559

-4.36035

-0.79459

-1.10648

-1.02879

-0.40621

0.34296

-1.51823

-0.77228

-3.68446

-0.70537

1.59162

0.57716

0.48001

-0.38195

-1.07485

1.71471

-1.82605

1.13478

1.16997

0.91173

-0.62504

1.51396

-0.15868

-2.17748

-2.69962

-1.15146

-2.83833

-2.57897

0.51004

-0.13659

0.17946

0.11991

-1.99079

3.18683

3.10854

1.07902

0.58272

0.85597

-1.53397

0.40988

0.64832

-0.15890

-0.29848

-0.34849

2.42993

-0.59384

-0.16470

1.46935

3.40678

1.41359

1.87236

-1.53064

-0.56253

0.38757

-0.95550

-0.68306

3.42776

-0.33734

-2.58515

0.16452

-1.74974

0.08646

1.08093

-0.68306

1.73002

-2.62358

-1.92914

-0.46001

1.04097

-0.03622

0.88267

0.14222

-0.40485

0.08646

0.75925

0.09761

-0.94971

-0.35964

-1.00794

-1.09570

1.23375

-0.43771

-1.12598

0.20913

1.18983

0.86712

-0.95545

-1.16262

-2.48756

2.45077

2.50875

0.14222

1.02483

-0.04737

2.32357

1.46935

-0.06018

2.16080

0.24494

Solutions

Expert Solution

Minitab output:

Regression Analysis: AcmeofReturn versus TSERofReturn

The regression equation is
AcmeofReturn = 0.020 + 0.598 TSERofReturn


Predictor Coef SE Coef T P
Constant 0.0195 0.2156 0.09 0.928
TSERofReturn 0.5980 0.1862 3.21 0.002


S = 1.65612 R-Sq = 15.3% R-Sq(adj) = 13.8%


Analysis of Variance

Source DF SS MS F P
Regression 1 28.300 28.300 10.32 0.002
Residual Error 57 156.336 2.743
Total 58 184.636


Predicted Values for New Observations

New Obs Fit SE Fit 95% CI 95% PI
1 0.916 0.352 (0.212, 1.621) (-2.474, 4.307)


Values of Predictors for New Observations

New Obs TSERofReturn
1 1.50

95% confidence Interval for the last month's rate of return on Acme Oil and Gas stock when Last month, the TSE Index's monthly rate of return was 1.5%: (0.212, 1.621).

orchestra answered 3 years ago
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