Question: Refer to Demonstration Exercise 11.1 where we are trying to link tolerance for risk (x) to the % of financial assets that an investor has

Refer to Demonstration Exercise 11.1 where we are trying to link tolerance for risk (x) to the % of financial assets that an investor has invested in the stock market (y). The estimated regression equation turned out to be ŷ = 20 – 3.5x.

a. Show the 95% confidence interval estimate of the “population” intercept, Interpret your interval.

b. Show the 95% confidence interval estimate of the “population” slope, Interpret your interval.

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The estimated regression equation is 20 35 x x y y y 2 x 2 x x 2 12 60 62 2 4 144 2 4 8 50 48 2 4 64 ... View full answer

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