(c) Predict the rate of return of the stock if the rate of return on the S&P 500 for a randomly selected month is 4.15%. y = % (Round to one decimal place as needed.)

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The following data represents the rate of return of the stock exchange (x) and the rate of return of a certain stock (y). The equation of the least squares regression line
is y = 0.9764x +0.5975 and the standard error of the estimate is 2.3518. Answer parts (a)-(d).
0.23
0.94
1.40
3.86
3.25 -2.53 1.89
- 1.91 - 2.01 3.00
1.78
0.90
y.
1.21 - 0.57 -0.59 5.89
5.90 -2.58 0.06
0.06
5.79 - 1.57
(a) What is the mean rate of return for the stock if the rate of return of the S&P 500 is 4.15%?
y = 4.6 % (Round to one decimal place as needed.)
%3D
(b) Construct a 90% confidence interval about the mean rate of return of y if x= 4.15%.
Lower Bound
= 2.2 %
Upper Bound
(Round to one decimal place as needed.)
=D7.1%
(c) Predict the rate of return of the stock if the rate of return on the S&P 500 for a randomly selected month is 4.15%.
y = % (Round to one decimal place as needed.)
Transcribed Image Text:Question Help The following data represents the rate of return of the stock exchange (x) and the rate of return of a certain stock (y). The equation of the least squares regression line is y = 0.9764x +0.5975 and the standard error of the estimate is 2.3518. Answer parts (a)-(d). 0.23 0.94 1.40 3.86 3.25 -2.53 1.89 - 1.91 - 2.01 3.00 1.78 0.90 y. 1.21 - 0.57 -0.59 5.89 5.90 -2.58 0.06 0.06 5.79 - 1.57 (a) What is the mean rate of return for the stock if the rate of return of the S&P 500 is 4.15%? y = 4.6 % (Round to one decimal place as needed.) %3D (b) Construct a 90% confidence interval about the mean rate of return of y if x= 4.15%. Lower Bound = 2.2 % Upper Bound (Round to one decimal place as needed.) =D7.1% (c) Predict the rate of return of the stock if the rate of return on the S&P 500 for a randomly selected month is 4.15%. y = % (Round to one decimal place as needed.)
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