Data TableYear200720082009201020112012201320142015201620172018Rate of Return of Company Rate of Return of Company120.2030.4020.3100.5100.2670.4100.1950.436- 0.101-0.060-0.130- 0.161- 0.234-0.3570.2640.3080.2070.0900.030-0.0140.1280.093-0.0350.027PrintDoneCritical Values of the Correlation CoefficientCritical Values for Correlation CoefficientVn34567Screen Shot 202...QCritical Values of the Correlation Coefficient0.9970.9500.8780.8110.75470.7548 0.70790.66610 0.63211 0.60212 0.57613 0.55314 0.53215 0.51416 0.49717 0.48218 0.46819 0.45620 0.44421 0.43322 0.42323 0.41324 0.40425 0.39626 0.38827 0.38128 0.37429 0.36730 0.361n The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k).Click here to view the data table. Click here to view the table of critical values of the correlation coefficient.(a) Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable. Choose the correct graph below.O A.OC.RR of Company 1RR of Company 20.30-0.00-NoYes-0.30--0.50.50-0.00--0.50-0.00.5RR of Company 2-0.3 0.0 0.3RR of Company 1(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.)OScreen Shot 2023-04-09 at...(d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable.y=x+(Round to four decimal places as needed.)(e) Predict the rate of return of Company 2 if the rate of return of Company 1 is 0.1 (10%).The rate of return of Company 2 will be(Round to four decimal places as needed.)Below averageAbove averageB.D.(g) Interpret the slope.For each percentage point increase in the rate of return for Company 1, the rate of return of Company 2 will(Round to two decimal places as needed.)RR of Company:RR of Company 10.50-0.00--0.50--0.3 0.0RR of Company 10.50-(c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2?0.00--0.50-Ⓡ0.3-0.3 0.0 0.3RR of Company 2Q(h) Interpret the y-intercept.▼by about percentage points, on average.A. The y-intercept indicates that the rate of return for Company 2 will be(Round to four decimal places as needed.)B. There is no meaningful interpretation for the intercept.C. The y-intercept indicates that the rate of return for Company 1 will be(Round to four decimal places as needed.)O C.(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.)(j) Plot residuals against the rate of return of Company 1. Choose the correct graph below.A.vResidualYesNo0.20-0.10-0.00(f) If the actual rate of return for Company 2 was 12.4% when the rate of return of Company 1 was 10%, was the performance of Company 2 above or below average among all years the returns ofCompany 1 were 10%?A0.15-0.00--0.25 TScreen Shot 202...O●-0.3 0.0 0.3RR of Company 1-0.3 0.0 0.3RR of Company 12iO YesO No(k) Are there any years where the rate of return of Company 2 was unusual?OO D.0.30-0.20-Does the residual plot confirm that the relation between the rate of return of Company 1 and Company 2 is linear?0.10-0.3when the rate of return for Company 1 is 0.when the rate of return for Company 2 is 0.0.0 0.3RR of Company 1Q✔B.Residual0.25-0.00-●-0.15-T-0.3●0.0 0.3RR of Company 1Screen Shot2023-0....31.43 PScreen Shot2023-0...32.00 PScreen Shot2023-0....32.17 P

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The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). Click here to view the data table. Click here to view the table of critical values of the correlation coefficient. (a) Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable. Choose the correct graph below. OA. OB. OC. 0.30+ 0.00 -0.30- -0.5 0.0 0.0 0.50- 0.00 -0.50 0.5 RR of Company 2 -0.3 0.0 0.3 RR of Company 1 Q Q (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.) Screen Shot 2023-04-09 at... Q Q OD. 0.50+ 0.00- -0.50 -0.3 0.0 0.50 0.00- -0.50 0:3 RR of Company 1 -0.3 0.0 0.3 RR of Company 2 c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2? No Yes Q Q (h) Interpret the y-intercept. OA. The y-intercept indicates that the rate of return for Company 2 will be when the rate of return for Company 1 is 0. (Round to four decimal places as needed.) OB. There is no meaningful interpretation for the intercept. OC. The y-intercept indicates that the rate of return for Company 1 will be when the rate of return for Company 2 is 0. (Round to four decimal places as needed.) (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.) (1) Plot residuals against the rate of return of Company 1. Choose the correct graph below. О OC A. 0.15+ 020 0.00+ -0.25 -0.3 0.0 0.3 RR of Company Q Q G Screen Shot 202... OD 010 00 O B. 0.25 A 0.00 -0.15 ". -0.3 0.0 0.3 RR of Company 1 Q G Screen Sh 2023-0....31.

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P