The following data represents the rate of return of the stock exchange (x) and the rate of return of a certain stock (y). The equation of the least squares regression line is y =0.9764x +0.5975 and the standard error of the estimate is 2.3518. Answer parts (a)(d). 0.23 0.94 1.21 -0.57 -0.59 5.89 1.40 3.86 3.25 -2.53 1.89 -1.91 -2.01 3.00 0.90 O 5.90 -2.58 0.06 1.78 0.06 5.79 -1.57 (a) What is the mean rate of return for the stock if the rate of return of the S&P 500 is 4.24%? y=% (Round to one decimal place as needed.) (b) Construct a 90% confidence interval about the mean rate of raturm of y if x-4.24%. Lower Bound Upper Bound 1% (Round to one decimal place as needed.) (c) Predict the rate of return of the stock if the rate of return on the S&P 500 for a randomly selected month is 4.24%. y-D% (Round to one decimal place as needed.) (d) Construct a 90% prediction interval about the rate of return of y if x 4.24% Lower Bound Upper Bound peeded

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The following data represents the rate of return of the stock exchange (x) and the rate of return of a certain stock (y) The equation of the least squares regression line
is y = 0.9764x +0.5975 and the standard error of the estimate is 2.3518. Answer parts (a)-(d).
0.23
1.21 -0.57 -0.59 5.89
0.94 1.40 3.86
3.25 -2.53 1.89 -1.91 -2.01 3.00 0.90 O
1.78 0.06
5.90 - 2.58 0.06
5.79 - 1.57
*....
(a) What is the mean rate of return for the stock if the rate of return of the S&P 500 is 424%?
y= % (Round to one decimal place as needed.)
(b) Construct a 90% confidence interval about the mean rate of return of y if x4.24%.
Lower Bound
Upper Bound
(Round to one decimal place as needed.)
(c) Predict the rate of retun of the stock if the rate of retum on the S&P 500 for a randomly selected month is 4.24%.
y=% (Round to one decimal place as needed.)
(d) Construct a 90% prediction interval about the rate of return of y if x 4.24%.
Lower Bound
Upper Bound
(Round to one decimal place as needed.)
Transcribed Image Text:The following data represents the rate of return of the stock exchange (x) and the rate of return of a certain stock (y) The equation of the least squares regression line is y = 0.9764x +0.5975 and the standard error of the estimate is 2.3518. Answer parts (a)-(d). 0.23 1.21 -0.57 -0.59 5.89 0.94 1.40 3.86 3.25 -2.53 1.89 -1.91 -2.01 3.00 0.90 O 1.78 0.06 5.90 - 2.58 0.06 5.79 - 1.57 *.... (a) What is the mean rate of return for the stock if the rate of return of the S&P 500 is 424%? y= % (Round to one decimal place as needed.) (b) Construct a 90% confidence interval about the mean rate of return of y if x4.24%. Lower Bound Upper Bound (Round to one decimal place as needed.) (c) Predict the rate of retun of the stock if the rate of retum on the S&P 500 for a randomly selected month is 4.24%. y=% (Round to one decimal place as needed.) (d) Construct a 90% prediction interval about the rate of return of y if x 4.24%. Lower Bound Upper Bound (Round to one decimal place as needed.)
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