Consider the regession equation: do gib + g(e)where6-the average diference between the monthly retum on stock i and the monthly risk free ratebthe beta of stockis(e)a measure of the nonsystematic variance of the stockiIf you estimated this regression equation and the CAPM was valid, you would expect the estimated coefficient, g. has to beDa equal to the average dference between me monthly retum on the market portfolo and the monthly r tee rateOh equal to the nsk-thren rate of retum.De. None of the options are correct

Answered: Image /qna-images/answer/627c076c-39ba-438c-9992-425d8705a376.jpg

Answered: Consider the regession equation: d6 gb…

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter4: Linear Functions

Section: Chapter Questions

Problem 30PT: For the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or...

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Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s pole vault height has fallen below the value predicted by the regression line in Example 2. This might have occurred because when the pole vault was a new event there was much room for improvement in vaulters’ performances, whereas now even the best training can produce only incremental advances. Let’s see whether concentrating on more recent results gives a better predictor of future records. (a) Use the data in Table 2 (page 176) to complete the table of winning pole vault heights shown in the margin. (Note that we are using x=0 to correspond to the year 1972, where this restricted data set begins.) (b) Find the regression line for the data in part ‚(a). (c) Plot the data and the regression line on the same axes. Does the regression line seem to provide a good model for the data? (d) What does the regression line predict as the winning pole vault height for the 2012 Olympics? Compare this predicted value to the actual 2012 winning height of 5.97 m, as described on page 177. Has this new regression line provided a better prediction than the line in Example 2?
Find the equation of the regression line for the following data set. x 1 2 3 y 0 3 4
The following fictitious table shows kryptonite price, in dollar per gram, t years after 2006. t= Years since 2006 0 1 2 3 4 5 6 7 8 9 10 K= Price 56 51 50 55 58 52 45 43 44 48 51 Make a quartic model of these data. Round the regression parameters to two decimal places.
For the following exercises, use Table 4 which shows the percent of unemployed persons 25 years or older who are college graduates in a particular city, by year. Based on the set of data given in Table 5, calculate the regression line using a calculator or other technology tool, and determine the correlation coefficient. Round to three decimal places of accuracy
For the following exercises, consider the data in Table 5, which shows the percent of unemployed in a city ofpeople25 years or older who are college graduates is given below, by year. 41. Based on the set of data given in Table 7, calculatethe regression line using a calculator or othertechnology tool, and determine the correlationcoefficient to three decimal places.
For the following exercises, consider this scenario: The profit of a company decreased steadily overa ten-year spam.The following ordered pairs shows dollars and the number of units sold in hundreds and the profit in thousands ofover the ten-year span, (number of units sold, profit) for specific recorded years: (46,600),(48,550),(50,505),(52,540),(54,495). Use linear regression to determine a function Pwhere the profit in thousands of dollars depends onthe number of units sold in hundreds.
bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.
(a) The standard error Se of the linear regression model is given in the printout as "S." What is the value of Se?
A group of students measure the length and width of a random sample of beans. They are interested in investigating the relationship between the length and width. Their summary statistics are displayed in the table below. All units, if applicable, are millimeters. Mean width: 7.555 Stdev width: 0.914 Mean height: 12.686 Stdev height: 1.634 Correlation coefficient: 0.8203 d) If the students are interested in using the height of the beans to predict the width, calculate the slope of this new regression equation. e) Write the equation of the best-fit line that can be used to predict bean widths. Use x to represent height and y to represent width.
Which of the following does not need to be computed to determine a simple regression line? SSx SP "Y-hat" SSy
A local retail store compared their monthly sales of Umbrellas with the amount of rainfall that occurred during that month. They computed the following statistics: Rainfall (in) #of umbrellas Mean=4.64 mean= 34.2 SD=1.17 SD=13.2 r=0.8 a) find the equation for the regression line that predicts the monthly sales of umbrellas from monthly rainfall b) forecasters are predicting that next month will be a wet one,expecting six inches of rain. How many umbrellas should the store expect to sell?
A statistics professor wants to determine how students' final grades are related to mid-term exam scores, applied in the middle of the term, and the number of classes missed. The teacher selects 10 students from his class and obtains the following data as an attachment. Y = b + m1x1 + m2x2 being the general form of the multiple regression equation referring to the data above. Check the alternative that corresponds to the approximate value of b, m1 and m2, respectively: a) 46,39; 0,54; -4,89 b) -4,89; 0,54; 46,39 c) 46,39; -4,89; 0,54 d) -4,89; 46,39; 0,54

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