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. (a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of Bo and B₁ 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 answ below. State the null and alternative hypotheses. OA. Ho Po=0 H₁: Po 0 OB. Ho Po=0 Hạ Bozo OC. Ho P₁=0 H₁ B₁ 0 OD. Ho B₁ = 0 H₁ B₁ >0 Determine the P-value for this hypothesis test. P-value= (Round to three decimal places as needed)
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. (a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of Bo and B₁ 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 answ below. State the null and alternative hypotheses. OA. Ho Po=0 H₁: Po 0 OB. Ho Po=0 Hạ Bozo OC. Ho P₁=0 H₁ B₁ 0 OD. Ho B₁ = 0 H₁ B₁ >0 Determine the P-value for this hypothesis test. P-value= (Round to three decimal places as needed)
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
Related questions
Question
Transcribed Image Text:Rate of Return
Month
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sept-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Rates of return of
the index, x
4.23
3.25
- 1.78
- 3.20
1.29
3.58
1.48
- 4.40
-0.86
- 6.12
- 3.48
Rates of return of the
company stock, y
3.28
5.09
0.54
2.88
2.69
7.41
- 4.83
-2.38
2.37
- 4.27
-3.77
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.
(a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of Bo and B₁.
The estimate of Bo is
(Round to four decimal places as needed.)
The estimate of B₁ 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 answer
below.
State the null and alternative hypotheses.
OA. Ho Bo=0
Hi Boto
OB. Ho: Po=0
Hạ Bo0
OC. Ho P₁=0
H₁: B₁ #0
OD. Ho P₁=0
H₁ B₁ > 0
Determine the P-value for this hypothesis test.
P-value = (Round to three decimal places as needed.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 11 images
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage