Using the data below which represents the rate of return of a certain company stock for 11months, compared with the rate of return of a certain index of 500 stocks. Both are in percent. Treating the rate of return of the index as the explanatoryvariable, x how do I determine the estimates of 00 and 1? Assuming the residuals are normallydistributed, how would I test whether a linear relation exists between the rate of return of theindex, x, and the rate of return for the companystock, y, at the =0.10 level of significance stating the null and alternative hypotheses and showing the P-value for the hypothesis test? If I'm assuming the residuals are normallydistributed, how do I then construct a90% confidence interval for the slope of the trueleast-squares regression line and then determine the mean rate of return for the company stock if the rate of return of the index is 3.15%?

MonthRates of return of the index, xRates of the return of the company stock, y

APR-074.233.38

MAY-073.255.09

JUN-07-1.780.54

JULY-07-3.202.88

AUG-071.292.69

SEP-073.587.41

OCT-071.48-4.83

NOV-07-4.40-2.38

DEC-07-0.862.37

JAN-08-6.12-4.27

FEB-08-3.48-3.77