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 1.40 3.86 3.25 -2.53 1.89 -1.91-2.01 3.00 0.90 y 1.21 -0.57-0.59 5.89 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 3.95 % ? -% (Round to one decimal place as needed.) (b) Construct a 90% confidence interval about the mean rate of return of y if x = 3.95%. Lower Bound % Upper Bound = (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 3.95%. y=% (Round to one decimal place as needed.)

MATLAB: An Introduction with Applications
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Chapter1: Starting With Matlab
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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).
x 0.23 0.94 1.40 3.86 3.25 -2.53 1.89 -1.91-2.01 3.00 0.90
y 1.21 -0.57-0.59 5.89 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 3.95% ?
y= % (Round to one decimal place as needed.)
(b) Construct a 90% confidence interval about the mean rate of return of y if x = 3.95%.
Lower Bound
Upper Bound
= 0%
(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 3.95%.
y=% (Round to one decimal place as needed.)
(d) Construct a 90% prediction interval about the rate of return of y if x = 3.95%.
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). x 0.23 0.94 1.40 3.86 3.25 -2.53 1.89 -1.91-2.01 3.00 0.90 y 1.21 -0.57-0.59 5.89 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 3.95% ? y= % (Round to one decimal place as needed.) (b) Construct a 90% confidence interval about the mean rate of return of y if x = 3.95%. Lower Bound Upper Bound = 0% (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 3.95%. y=% (Round to one decimal place as needed.) (d) Construct a 90% prediction interval about the rate of return of y if x = 3.95%. Lower Bound = = Upper Bound (Round to one decimal place as needed.)
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