The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k).Year Rate of Return of Company 1 Rate of Return of Company 21996 0.203 0.3981997 0.310 0.5101998 0.267 0.4101999 0.195 0.4362000 -0.101 -0.0602001 -0.130 -0.1512002 -0.234 -0.3572003 0.264 0.3282004 0.090 0.2072005 0.030 -0.0142006 0.128 0.0932007 -0.035 0.027(j) Plot residuals against the rate of return of Company 1. Does the residual plot confirm that the relation between the rate of return of Company 1 and Company 2 is linear? Yes or No? (k) Are there any years where the rate of return of Company 2 was unusual? Yes or No? (g) Interpret the slope. Choose the correct answer below.O A. For each percentage point increase in the rate of return for Company 1, the rate of return of Company 2 will decrease by about 0.03 percentage points, on average.O B. For each percentage point increase in the rate of return for Company 1, the rate of return of Company 2 will increase by about 1.48 percentage points, on average.OC. For each percentage point increase in the rate of return for Company 1, the rate of return of Company 2 will increase by about 0.03 percentage points, on average.O D. For each percentage point increase in the rate of return for Company 1, the rate of return of Company 2 will decrease by about 1.48 percentage points, on average.(h) Interpret the y-intercept. Choose the correct answer below.O A. The y-intercept indicates that the rate of return for Company 1 will be 1.4787 when there is no change to Company 2.O B. The y-intercept indicates that the rate of return for Company 2 will be 1.4787 when there is no change to Company 1.OC. The y-intercept indicates that the rate of return for Company 1 will be 0.0306 when there is no change to Company 2.O D. The y-intercept indicates that the rate of return for Company 2 will be 0.0306 when there is no change to Company 1.(i) What proportion of the variability in the rate of return of Company 2 is explained by the variability in the rate of return of Company 1?The proportion of the variability is%.(Round to one decimal place as needed.) (b) Determine the correlation coefficient between rate of return of Company 1 and Company 2.The correlation coefficient is(Round to three decimal places as needed.)(c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2?YesNo(d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable. Choose the correct answer below.y = 0.0306x + 1.4787y = 1.4787x -0.0306y = 1.4787x +0.0306O V = - 1.4787x +0.0306(e) Predict the rate of return of Company 2 if the rate of return of Company 1 is 0.15 (15%).The rate of return of Company 2 will be(Round to four decimal places as needed.)(f) If the actual rate of return for Company 2 was 20.0% when the rate of return of Company 1 was 15%, was the performance of Company 2 above or below average among all years thereturns of Company 1 were 15%?

Name: The accompanying data represent the annual rates of return of two com
Uploaded: 2024-03-20T06:38:58.000Z
Channel: Bartleby
Description: The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k).Year Rate of Return of Company 1 Rate of Return of Company 21996 0.203 0.3981997 0.310 0.5101998 0.267 0.41019