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 Answer parts (a)-(d). x | 0.23 0.94 1.40 3.86 3.25 - 2.53 1.89 - 1.91 - 2.01 3.00 0.90 O y 1.21 - 0.57 – 0.59 5.89 5.90 - 2.58 0.06 1.78 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 3.86%? y=% (Round to one decimal place as needed.) (b) Construct a 90% confidence interval about the mean rate of return of y if x= 3.86%. Lower Bound Upper Bound (Round to one decimal place as needed.) (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 3.86%. y%3 % (Round to one decimal place as needed.) (d) Construct a 90% prediction interval about the rate of return of y if x = 3.86%. Lower Bound %3D Upper Bound %3D (Round to one decimal place as needed.)

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 Answer parts (a)-(d). x | 0.23 0.94 1.40 3.86 3.25 - 2.53 1.89 - 1.91 - 2.01 3.00 0.90 O y 1.21 - 0.57 – 0.59 5.89 5.90 - 2.58 0.06 1.78 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 3.86%? y=% (Round to one decimal place as needed.) (b) Construct a 90% confidence interval about the mean rate of return of y if x= 3.86%. Lower Bound Upper Bound (Round to one decimal place as needed.) (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 3.86%. y%3 % (Round to one decimal place as needed.) (d) Construct a 90% prediction interval about the rate of return of y if x = 3.86%. Lower Bound %3D Upper Bound %3D (Round to one decimal place as needed.)

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 34EQ

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