D. Reject Ho. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of returr company stock. Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line. Lower bound: 0.2367 (Round to four decimal places as needed.) Upper bound: 1.2955 (Round to four decimal places as needed.) What is the mean rate of return for the company stock if the rate of return of the index is 3.15%? . e mean rate of return for the company stock if the rate of return of the index is 3.15% is % pund to three decimal places as needed.)

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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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.
EEB Click the icon to view the data table.
i Rate of Return
O C. Do not reject Ho. There is not suffici
d the rate of return of the
company stock.
O D. Reject Hp. There is not sufficient evi
Month
Rates of return of the Rates of return of the O
ate of return of the
company stock.
index, x
company stock, y
(c) Assuming the residuals are normally dist
Apr-18
4.23
3.28
May-18
3.25
5.09
line.
Lower bound: 0.2367 (Round to four d
Jun-18
-1.78
0.54
Upper bound. 1.2955 (Round to four d
Jul-18
-3.20
2.88
Aug-18
1.29
2.69
(d) What is the mean rate of return for the co
Sept-18
Oct-18
3.58
7.41
The mean rate of return for the company sto
1.48
-4,83
(Round to three decimal places as needed.)
Nov-18
4.40
-2,38
Dec-18
|-0.86
2.37
Jan-19
-6.12
-4.27
Enter your answer in the answer box and
Feb-19
-3.48
-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. EEB Click the icon to view the data table. i Rate of Return O C. Do not reject Ho. There is not suffici d the rate of return of the company stock. O D. Reject Hp. There is not sufficient evi Month Rates of return of the Rates of return of the O ate of return of the company stock. index, x company stock, y (c) Assuming the residuals are normally dist Apr-18 4.23 3.28 May-18 3.25 5.09 line. Lower bound: 0.2367 (Round to four d Jun-18 -1.78 0.54 Upper bound. 1.2955 (Round to four d Jul-18 -3.20 2.88 Aug-18 1.29 2.69 (d) What is the mean rate of return for the co Sept-18 Oct-18 3.58 7.41 The mean rate of return for the company sto 1.48 -4,83 (Round to three decimal places as needed.) Nov-18 4.40 -2,38 Dec-18 |-0.86 2.37 Jan-19 -6.12 -4.27 Enter your answer in the answer box and Feb-19 -3.48 -3.77
O D.
Reject Hn. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of returr
company stock.
(c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line.
Lower bound. 0 2367 (Round to four decimal places as needed.)
Upper bound. 1.2955 (Round to four decimal places as needed.)
(d) What is the mean rate of return for the company stock if the rate of return of the index is 3.15%?
The mean rate of return for the company stock if the rate of return of the index is 3.15% is %.
(Round to three decimal places as needed.)
Transcribed Image Text:O D. Reject Hn. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of returr company stock. (c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line. Lower bound. 0 2367 (Round to four decimal places as needed.) Upper bound. 1.2955 (Round to four decimal places as needed.) (d) What is the mean rate of return for the company stock if the rate of return of the index is 3.15%? The mean rate of return for the company stock if the rate of return of the index is 3.15% is %. (Round to three decimal places as needed.)
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