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. Click the icon to view the data table ''l' P1. ΤΡΤ С. Но: В1 %3D0 O D. Ho: Po 0 Rate of Return Determine the P-value for this hypothesis test. P-value 0.026 (Round to three decimal places as needed.) State the appropriate conclusion at the a =0.10 level of significance. Choose the correct answer below. Month Rates of return of the Rates of return of the index, x company stock, y Apr-07 4.23 3.38 return of the company stock. A. Do not reject Ho. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate 3.25 May-07 5.09 B. Reject H. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock. -1.78 0.54 Jun-07 2.88 C. Do not 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 return of the company stock Jul-07 -3.20 Aug-07 1.29 2.69 D. Reject Ho. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock. Sept-07 3.58 7.41 Oct-07 1.48 -4.83 (c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line - 4.40 - 2.38 Nov-07 Lower bound: 0.2412 (Round to four decimal places as needed.) -0.86 Dec-07 2.37 Upper bound: 1.2986 (Round to four decimal places as needed.) Jan-08 -6.12 -4.27 Feb-08 -3.48 -3.77 (d) What is the mean rate of return for the company stock if the rate of return of the index is 3.25%? The mean rate of return for the company stock if the rate of return of the index is 3.25% is Print Done (Round to three decimal places as needed.) Click to select vour answerls)

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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.
Click the icon to view the data table
''l' P1.
ΤΡΤ
С. Но: В1 %3D0
O D. Ho: Po 0
Rate of Return
Determine the P-value for this hypothesis test.
P-value 0.026 (Round to three decimal places as needed.)
State the appropriate conclusion at the a =0.10 level of significance. Choose the correct answer below.
Month
Rates of return of the Rates of return of the
index, x
company stock, y
Apr-07
4.23
3.38
return of the company stock.
A. Do not reject Ho. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate
3.25
May-07
5.09
B. Reject H. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock.
-1.78
0.54
Jun-07
2.88
C. Do not 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 return of the company stock
Jul-07
-3.20
Aug-07
1.29
2.69
D. Reject Ho. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock.
Sept-07
3.58
7.41
Oct-07
1.48
-4.83
(c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line
- 4.40
- 2.38
Nov-07
Lower bound: 0.2412 (Round to four decimal places as needed.)
-0.86
Dec-07
2.37
Upper bound: 1.2986 (Round to four decimal places as needed.)
Jan-08
-6.12
-4.27
Feb-08
-3.48
-3.77
(d) What is the mean rate of return for the company stock if the rate of return of the index is 3.25%?
The mean rate of return for the company stock if the rate of return of the index is 3.25% is
Print
Done
(Round to three decimal places as needed.)
Click to select vour answerls)
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. Click the icon to view the data table ''l' P1. ΤΡΤ С. Но: В1 %3D0 O D. Ho: Po 0 Rate of Return Determine the P-value for this hypothesis test. P-value 0.026 (Round to three decimal places as needed.) State the appropriate conclusion at the a =0.10 level of significance. Choose the correct answer below. Month Rates of return of the Rates of return of the index, x company stock, y Apr-07 4.23 3.38 return of the company stock. A. Do not reject Ho. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate 3.25 May-07 5.09 B. Reject H. There is not sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock. -1.78 0.54 Jun-07 2.88 C. Do not 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 return of the company stock Jul-07 -3.20 Aug-07 1.29 2.69 D. Reject Ho. There is sufficient evidence to conclude that a linear relation exists between the rate of return of the index and the rate of return of the company stock. Sept-07 3.58 7.41 Oct-07 1.48 -4.83 (c) Assuming the residuals are normally distributed, construct a 90% confidence interval for the slope of the true least-squares regression line - 4.40 - 2.38 Nov-07 Lower bound: 0.2412 (Round to four decimal places as needed.) -0.86 Dec-07 2.37 Upper bound: 1.2986 (Round to four decimal places as needed.) Jan-08 -6.12 -4.27 Feb-08 -3.48 -3.77 (d) What is the mean rate of return for the company stock if the rate of return of the index is 3.25%? The mean rate of return for the company stock if the rate of return of the index is 3.25% is Print Done (Round to three decimal places as needed.) Click to select vour answerls)
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