Over 25 years you collect data on: Year end percent change in stock price of ABC Inc. (Y) Year end percent change in S&P 500. (X) Regression findingY = Ö.12 + 1.4(X) ; sɛ= 0.7 Intrepretation-For any given value of X, we would expect 95% of all scores of Y to fall within ±1.96 * 0.7 points of the predicted value. Is this a high or low risk?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
Over 25 years you collect data on:
Year end percent change in stock price of ABC
Inc. (Y)
Year end percent change in S&P 500. (X)
Regression findingY = 0.12 + 1.4(X); sɛ= 0.7
Intrepretation-For any given value of X, we
would expect 95% of all scores of Y to fall
within ±1.96 * 0.7 points of the predicted
value. Is this a high or low risk?
Transcribed Image Text:Over 25 years you collect data on: Year end percent change in stock price of ABC Inc. (Y) Year end percent change in S&P 500. (X) Regression findingY = 0.12 + 1.4(X); sɛ= 0.7 Intrepretation-For any given value of X, we would expect 95% of all scores of Y to fall within ±1.96 * 0.7 points of the predicted value. Is this a high or low risk?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Numerical Differentiation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman