### Linear Regression and Market Correlation: Understanding Beta#### Question:After running a linear regression with a 1-factor model using the market premium, if beta is negative, then?#### Options:- **The stock and the market are positively correlated** (move in the same direction)- **The stock and the market are negatively correlated** (move in the opposite direction)- **No meaning**- **Not enough information**- **You must construct additional Pylons**#### Explanation:This question explores the relationship between a stock and the market as determined by a linear regression model. In this context:- **Negative Beta**: Indicates a **negative correlation** between the stock and the market. This means they move in opposite directions. For example, when the market goes up, the stock tends to go down, and vice versa. The option "You must construct additional Pylons" is likely a humorous reference without relevance to the financial context.

Answered: After running a linear regression with…

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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E Homework: Week 3 - Linear Functions and Slope Question 14, 2.2 Part 1 of 3 The expected number y (in millions) of employed registered nurses x years after 2012 is given by the equation y = 0.19x + 2.25. a) Find the slope of this equation. Explain what this slope signifies. b) Find the y-intercept of the equation. Explain what this y-intercept signifies. c) Use the equation to predict the number of employed registered nurses in 2020. ..... a) Select the correct choice below and fill in the answer boxes to complete your choice. (Type integers or decimals.) O A. The slope of the equation is which signifies that in 2012 there were approximately million employed registered nurses. O B. The slope of the equation is which signifies that each year the number of employed registered nurses will decrease by million. O C. The slope of the equation is which signifies that each year the number of employed registered nurses will increase by million. View an example Get more help - Heln me solye…
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Canvas -→ X C0| ® E Exhibit 6 Part of an Excel regression output relating salary for programmer (dependent variable) with three independent variables: Test score, Graduate Degree, and Experience is shown below. Coeffic. Std. Err. t Stat P-value Intercept 7.9448 7.3808 1.0764 0.2977 Test Score 1.1476 0.2976 4.8561 0.0850 Grad. 0.1969 0.0899 2.1905 0.0011 Degree Experience -2.2804 1.9866 -1.0479 0.3679 Refer to Exhibit 6. Based on the Excel output, at 95% confidence (alpha = 0.05) which of the independent variables in the output contributes significantly to explain salary? O Experience Grad Degree Intercept Test score
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Bankers at a large financial institution created the linear regression model d = 0.37 – 0.0004s to predict the proportion of customers who would default on their loans, d, based on the customer's credit score, s. For a customer with a credit score of 700, which of the following is true? A The default proportion is predicted to be 0.09. В The default proportion will be 0.09. The default proportion is predicted to be approximately 1.75 million. The default proportion will be approximately 1.75 million. E The default proportion is predicted to be 0.28.
Using data from 50 workers, a researcher estimates Wage Be + B₁Education + B2Experience + B3Age +, where Wage is the hourly wage rate and Education, Experience, and Age are the years of higher education, the years of experience, and the age of the worker, respectively. A portion of the regression results is shown in the following table. Coefficients Standard Error t Stat p-Value Intercept 7.45 3.79 1.97 0.0554 Education 1.06 0.37 2.86 0.0063 Experience 0.37 0.18 2.06 0.0455 Age -0.02 0.06 -0.33 0.7404 a-1. Interpret the point estimate for ẞ1. As Education increases by 1 year, Wage is predicted to increase by 1.06/hour. As Education increases by 1 year, Wage is predicted to increase by 0.37/hour. As Education increases by 1 year, Wage is predicted to increase by 1.06/hour, holding Age and Experience constant. As Education increases by 1 year, Wage is predicted to increase by 0.37/hour, holding Age and Experience constant. a-2. Interpret the point estimate for ẞ2. ○ As Experience…
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Part C
q10
Determination coefficient in simple linear regression analysisIf the value is 0.85, which of the following statements is correct? a) 0.15 part of the change in the dependent variable is explained by the independent variable.b) A change of 1 unit in the independent variable causes an average of 0.85 units of change in the dependent variable.c) There is a strong relationship between the variables in different directions.d) 0.85 part of the change in the dependent variable is explained by the independent variable.

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