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

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
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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.
E Click the icon to view the data table.
(a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of ßn and B,
.
The estimate of ßo isO.
(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 companv stock v at the a=0 10 level of significance Choose the
answer below.
O Rate of Return
- X
State the null and alternative hypotheses.
O A. Ho: Po =0
H,: Bo #0
Month
Rates of return of the Rates of return of the e
index, x
4.23
company stock, y
3.38
O B. Ho: Po = 0
H;: Po >0
Apr-18
May-18
3.25
5.09
- 1.78
- 3.20
Jun-18
0.54
OC. Ho: B1 =0
H;: B, #0
Jul-18
Aug-18
Sept-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
2.88
2.69
1.29
3.58
7.41
O D. Ho: P1 =0
H;: P, > 0
- 4.83
- 2.38
1.48
- 4.40
- 0.86
- 6.12
2.37
- 4.27
- 3.77
Determine the P-value for this hypothesis test.
- 3.48
P-value =D (Round to three decimal places as needed.)
State the appropriate conclusion at the a = 0.10 level of significance. Choose the correct answer below.
Print
Done
O A. Reject H.. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock.
O B. Do not reject H,. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock.
OC. Do not reject Hp. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock
O D. Reject H.. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock.
Transcribed Image Text: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. E Click the icon to view the data table. (a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of ßn and B, . The estimate of ßo isO. (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 companv stock v at the a=0 10 level of significance Choose the answer below. O Rate of Return - X State the null and alternative hypotheses. O A. Ho: Po =0 H,: Bo #0 Month Rates of return of the Rates of return of the e index, x 4.23 company stock, y 3.38 O B. Ho: Po = 0 H;: Po >0 Apr-18 May-18 3.25 5.09 - 1.78 - 3.20 Jun-18 0.54 OC. Ho: B1 =0 H;: B, #0 Jul-18 Aug-18 Sept-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 2.88 2.69 1.29 3.58 7.41 O D. Ho: P1 =0 H;: P, > 0 - 4.83 - 2.38 1.48 - 4.40 - 0.86 - 6.12 2.37 - 4.27 - 3.77 Determine the P-value for this hypothesis test. - 3.48 P-value =D (Round to three decimal places as needed.) State the appropriate conclusion at the a = 0.10 level of significance. Choose the correct answer below. Print Done O A. Reject H.. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock. O B. Do not reject H,. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock. OC. Do not reject Hp. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock O D. Reject H.. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock.
(c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line.
| (Round to four decimal places as needed.)
Upper bound: O (Round to four decimal places as needed.)
Lower bound:
(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.)
Transcribed Image Text:(c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line. | (Round to four decimal places as needed.) Upper bound: O (Round to four decimal places as needed.) Lower bound: (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.)
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