Question: Suppose your data scientist has informed you that a linear regression analysis revealed a large positive estimated slope of rainfall amount as a predictor for

Suppose your data scientist has informed you that a linear regression analysis revealed a "large" positive estimated slope of rainfall amount as a predictor for stock prices. You are understandably skeptical about the relationship between rainfall and stock prices. What would be a logical reaction to the data scientist's finding?

  • Inform your data scientist that there is no way this can be true.
  • Determine when the next flood warning will be, and reinvest in your company's stocks at that time.
  • Request the data scientist to compute a confidence interval for the slope.
  • Request the data scientist to perform a hypothesis test for whether the intercept is zero.

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