Question 1The following equation has been estimated by OLS:Rt = 0.567 +1.045Rmt n= 250(0.33) (0.066)where Rf and Rmt denote the excess return of a stock and the excess return of the marketindex for the London Stock Exchange.(a) Derive a 95% confidence interval for each coefficient.(b) Are these coefficients statistically significant? Explain the meaning of your findingswith regard to the Capital Asset Pricing Model (CAPM) theory.< 1 at the 1% level of significance. If you(c) Test the hypotheses Ho: B = 1 and Ha: ßreject Ho what does this indicate about this stock?

Given n=250 Rt^=0.567+1.045Rmt Standard error of intercept=0.33 Standard error of slope=0.066 Find…

Answered: The following equation has been…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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22. You are given the following value from a t-table as needed: P(t140 > 1.656) = 0.05 Association between student math and verbal scores on the SAT was modeled by a linear regression model using the output given below for sample scores for a graduating class from a high school. Find a 90% prediction interval for the Math score of a graduating student that has a verbal score of 500. Variable Count Mean Verbal 142 596.296 Math 142 612.099 Dependent variable is Math R-square = 46.9% s=71.75 with 142-2=140 df Variable Coefficient SE(Coeff) t-ratio P-value Intercept 209.554 34.35 6.1 <0.0001 Verbal 0.675 0.0568 11.9 <0.0001
Suppose that a researcher, using data on 150 randomly selected bicycles, estimates the OLS regression: Price=672.65-2.12x Weight, (185.8) (0.42) where Price measures the price of the th bike in dollars and Weight measures the weight of the th bike in kilograms. The 99% confidence interval for the intercept, ßo, will be (, ). (Round your answers to two decimal places.)
The data on y = annual sales ($1,000s) for new customer accounts and x = number of years of experience for a sample of 10 salespersons provided the estimated regression equation ŷ = 80 + 4x. For these data, x = 7, Σ(xi − x)2 = 142, and s = 4.6098. (a) Develop a 95% confidence interval for the mean annual sales (in thousands of dollars) for all salespersons with twelve years of experience. (Round your answers to two decimal places.) $ thousand to $ thousand (b) The company is considering hiring Tom Smart, a salesperson with twelve years of experience. Develop a 95% prediction interval of annual sales (in thousands of dollars) for Tom Smart. (Round your answers to two decimal places.) $ thousand to $ thousand
4. A simple linear regression is fit to a dataset. Unfortunately, the corresponding ANOVA table is not complete because some quantities in the table are missing due to unknown digital errors. Calculate the missing values, denoted by "?", in the ANOVA table based on the other available values. Is this regression model significant (α = 0.05)? Source Regression Residual Total df ? ? 21 SS ? ? ? MS = SS/df ? 1.13 F-Ratio 430.65 p-value ?
The table below lists measured amounts of redshift and the distances (billions of light-years) to randomly selected astronomical objects. Find the (a) explained variation, (b) unexplained variation, and (c) indicated prediction interval. There is sufficient evidence to support a claim of a linear correlation, so it is reasonable to use the regression equation when making predictions. For the prediction interval, use a 90% confidence level with a redshift of 0.0126. Redshift Distance 0.0238 0.31 a. Find the explained variation. 0.0543 0.74 (Round to six decimal places as needed.) b. Find the unexplained variation. (Round to six decimal places as needed.) c. Find the indicated prediction interval. 0.0722 1.02 billion light-years
You run a regression analysis on a bivariate set of data (n=15). You obtain the regression equationy=2.339x+22.015 with a correlation coefficient of r=0.886 (which is significant at α=0.01). You want to predict what value (on average) for the explanatory variable will give you a value of 150 on the response variable.What is the predicted explanatory value?x = (Report answer accurate to one decimal place.)
If the expected return on the market is 8% and the risk for your rate is 4%. What is the expected return for a stock with a beta equal to 2.00?
Consider the following information about variable X: Mean = 4, standard deviation = 2. Consider the following information about variable Y: Mean = 5, standard deviation = 3. If there is a correlation of r = 0.52 between variable X and variable Y, what is the intercept for a simple linear regression equation predicting Y on the basis of X? Please provide your answer as a raw score (not a z score) with a minimum of two decimal places.
For a given set of x and y data values, assume that the regression model assumptions are valid and that a 90% confidence interval for ₁ is given by (-2.2, -0.1). Which of the following statements are true? i) At a = 0.10, there is a significant linear relationship between x and y. ii) In the scatterplot of x and y, the values of y tend to decrease as the values of x increase. iii) Based on this confidence interval, we would reject the null hypothesis of no linear relationship at any significance level a ≤ 0.1. Select one: a. i) O b. i) and ii) O c. ii) d. i), ii), and iii)

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