7. For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate ofreturn (Y) of the common stock of a corporation on the percentage rate of return ( X) of standard andPoor's 500 Index. The following information is available:2020202020>y = 22.6 , x = 25.4 , ) xỉ = 145.7 ,) yf = 180.5 ,*Y = 150.5a. Compute the sample correlation coefficient and interpret your answer.b. Test to determine the significance of the linear relationship between x and y.c. Estimate the lincar regression of Y on X, and interpret your results. Hence write the regression lineand estimate Y when X is 8%.

Solution: Given information: n= 20 observation ∑y=22.6∑x=25.4∑x2=145.7∑y2=180.5∑xy=150.5

7. For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return (X) of standard and Poor's 500 Index. The following information is available: 20 20 20 >y = 22.6 , X = 25.4 , xỉ = 145.7 Syi = 180.5 , xy = 150.5 a. Compute the sample correlation coefficient and interpret your answer. b. Test to determine the significance of the linear relationship between x and y. c. Estimate the linear regression of Y on X, and interpret your results. Hence write the regression line and estimate Y when X is 8%.

7. For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return (X) of standard and Poor's 500 Index. The following information is available: 20 20 20 >y = 22.6 , X = 25.4 , xỉ = 145.7 Syi = 180.5 , xy = 150.5 a. Compute the sample correlation coefficient and interpret your answer. b. Test to determine the significance of the linear relationship between x and y. c. Estimate the linear regression of Y on X, and interpret your results. Hence write the regression line and estimate Y when X is 8%.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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