# Question: For a sample of 20 monthly observations a financial analyst

For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of return (Y) of the common stock of a corporation on the percentage rate of return (X) of the Standard & Poor’s 500 index. The following information is available:

a. Estimate the linear regression of Y on X.

b. Interpret the slope of the sample regression line.

c. Interpret the intercept of the sample regression line.

a. Estimate the linear regression of Y on X.

b. Interpret the slope of the sample regression line.

c. Interpret the intercept of the sample regression line.

**View Solution:**## Answer to relevant Questions

A corporation administers an aptitude test to all new sales representatives. Management is interested in the extent to which this test is able to predict sales representatives’ eventual success. The accompanying table ...Let the sample regression line be yi = b0 + b1xi + ei = y`i + ei (i = 1, 2, c, .., n) and let x and y denote the sample means for the independent and dependent variables, respectively. a. Show that ei = yi – y-bar – b(xi ...Use a simple regression model to test the hypothesis H0 : β1 = 0 versus H0 : β1 ≠ 0 with α = 0.05, given the following regression statistics. a. The sample size is 35, SST = 100,000, and the correlation between X and Y ...Given a simple regression analysis, suppose that we have obtained a fitted regression model y`i = 14 + 7xi and also Find the 95% confidence interval and 95% prediction interval for the point where x = 11. For a sample of 74 monthly observations the regression of the percentage return on gold (y) against the percentage change in the consumer price index (x) was estimated. The sample regression line, obtained through least ...Post your question