(a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of B, and B, The estimate of Bo is (Round to four decimal places as needed.) The estimate of B, is (Round to four decimal places as needed.) (b) Assuming the residuals are normally distributed, test whether a linear relation exists between the rate of return of the index, x, and the rate of return for the company stock, y, at the a= 0.10 level of significance. Choose the correct answe State the null and alternative hypotheses.

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
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(a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of B, and B,
The estimate of Bo is
(Round to four decimal places as needed.)
The estimate of B, is
(Round to four decimal places as needed.)
(b) Assuming the residuals are normally distributed, test whether a linear relation exists between the rate of return of the index, x, and the rate of return for the company stock, y, at the a= 0.10 level of significance. Choose the correct answe
State the null and alternative hypotheses.
Transcribed Image Text:(a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of B, and B, The estimate of Bo is (Round to four decimal places as needed.) The estimate of B, is (Round to four decimal places as needed.) (b) Assuming the residuals are normally distributed, test whether a linear relation exists between the rate of return of the index, x, and the rate of return for the company stock, y, at the a= 0.10 level of significance. Choose the correct answe State the null and alternative hypotheses.
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