Question: On Friday November 13 1989 prices on the New York

On Friday, November 13, 1989, prices on the New York Stock Exchange fell steeply; the Standard & Poor’s 500-share index was down 6.1% on that day. The data file New York Stock Exchange Gains and Losses shows the percentage losses (y) of the 25 largest mutual funds on November 13, 1989. Also shown are the percentage gains (x), assuming reinvested dividends and capital gains, for these same funds for 1989 through November 11.
a. Estimate the linear regression of November 13 losses on pre–November 13, 1989, gains.
b. Interpret the slope of the sample regression line.

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