10.31 Completing an ANOVA table. How are returns on common stocks in overseas

markets related to returns in U.S. markets? Consider measuring U.S. returns by the annual rate of return

on the Standard & Poors 500 stock index and overseas returns by the annual rate of return on the

Morgan Stanley Europe, Australasia, Far East (EAFE) index.14 Both are recorded in percents. We will

regress the EAFE returns on the S&P 500 returns for the years 1989 to 2014. Here is part of the Minitab

output for this regression:

The regression equation is

EAFE = 3.19 + 0.813 S&P

Analysis of Variance

Source DF SS MS F

Regression 1 5552.9

Residual Error

Total 10077.9

complete the analysis of variance table.

Source Degrees of freedom Sum of squares Mean square F

Model 1

Error

Total

Error n 2 SSE/DFE

Total n 1 SST/DFT