Question: We consider the multiple regression model: 2020(2019, ) = 0 + 1 2019 + 2 + using the standard assumptions underpinning this model. Fit the

We consider the multiple regression model: 2020(2019, ) = 0 + 1 2019 + 2 + using the standard assumptions underpinning this model.

Fit the model described above, write down the fitted regression equation and provide interpretations for estimates of 0 and 1

index lr2019 lr2020 marketCap
CAC40 0.0658298 0.02685495 75400000000.00
CAC40 0.19147151 -0.16236434 91300000000.00
CAC40 0.07821561 0.04285803 10100000000.00
CAC40 0.1243511 -0.10954496 65000000000.00
CAC40 0.1265585 -0.08835298 79400000000.00
CAC40 0.08231099 -0.05142489 11800000000.00
CAC40 0.09850815 0.06609138 31800000000.00
CAC40 0.00116355 -0.02758352 12000000000.00
CAC40 0.13691885 -0.09775087 35100000000.00
CAC40 0.07969873 -0.1381852 32400000000.00
CAC40 0.15020706 0.05451453 49800000000.00
CAC40 0.06058476 -0.06075814 32000000000.00
CAC40 0.08973407 -0.02721931 76100000000.00
CAC40 0.18068515 0.14261126 13000000000.00
CAC40 0.13804204 0.12068057 179000000000.00
CAC40 0.15282895 0.00677449 69000000000.00
CAC40 0.11797596 0.07087707 208000000000.00
CAC40 0.16832892 0.00214703 23200000000.00
CAC40 0.20525385 0.09112579 406000000000.00
CAC40 0.09980566 -0.01684231 21000000000.00
CAC40 -0.03297603 -0.12964248 26400000000.00
CAC40 0.0462421 -0.00714223 48100000000.00
CAC40 -0.09371317 0.00428299 18800000000.00
CAC40 -0.11168817 -0.07170909 12300000000.00
CAC40 0.11593558 -0.07450546 55400000000.00
CAC40 0.09743087 0.0117384 27000000000.00
CAC40 0.0735386 -0.05643024 110000000000.00
CAC40 0.18530129 0.11156366 84400000000.00
CAC40 0.04721466 -0.26056121 22000000000.00
CAC40 0.28327949 0.10148786 41400000000.00
CAC40 0.19237409 0.09619025 15200000000.00
CAC40 -0.04236456 -0.09175378 27000000000.00
CAC40 0.02751118 -0.14419041 151000000000.00
CAC40 0.12074613 -0.07368444 19300000000.00
CAC40 0.1381821 -0.08522425 60700000000.00
CAC40 0.0839846 0.00931855 9950000000.00
CAC40 0.17506091 0.09780311 11400000000.00
DJIA -0.03343833 -0.00403125 63400000000.00
DJIA 0.11595043 -0.01267223 135000000000.00
DJIA 0.09284416 -0.02056643 128000000000.00
DJIA 0.26988815 0.2570682 2480000000000.00
DJIA 0.00436805 -0.18236225 130000000000.00
DJIA 0.06527863 0.09079746 129000000000.00
DJIA 0.04443411 -0.15442346 327000000000.00
DJIA 0.04409046 -0.03008613 199000000000.00
DJIA 0.06779764 -0.00402017 258000000000.00
DJIA 0.12024976 0.09785184 195000000000.00
DJIA 0.13874914 0.05953096 127000000000.00
DJIA 0.10413914 0.08504789 327000000000.00
DJIA 0.12700472 0.07979422 136000000000.00
DJIA 0.07158591 -0.02727722 123000000000.00
DJIA 0.10561359 -0.07966042 119000000000.00
DJIA 0.05320795 0.03298359 417000000000.00
DJIA 0.15472394 -0.04021973 422000000000.00
DJIA 0.04643931 0.03578033 195000000000.00
DJIA 0.07565266 -0.0460496 273000000000.00
DJIA 0.19106623 0.14934215 2010000000000.00
DJIA 0.13559973 0.14501205 199000000000.00
DJIA 0.13315244 0.04688955 329000000000.00
DJIA 0.0746019 0.1361612 171000000000.00
DJIA 0.05828651 0.01071226 43400000000.00
DJIA 0.07190922 0.07659319 459000000000.00
DJIA 0.03827753 -0.01916051 170000000000.00
DJIA 0.15355028 0.06598158 474000000000.00
DJIA -0.06405396 -0.16980231 31600000000.00
DJIA 0.10577976 0.083852 396000000000.00
FTSE 0.15219814 0.02310624 16300000000.00
FTSE 0.10649575 -0.06683649 4730000000.00
FTSE 0.05230611 0.09987167 6660000000.00
FTSE 0.09456797 0.04756249 43100000000.00
FTSE 0.06840195 0.19623864 16800000000.00
FTSE 0.16868855 0.15356863 25100000000.00
FTSE 0.10437077 -0.05976273 15200000000.00
FTSE 0.11235342 -0.01646509 179000000000.00
FTSE 0.11640447 0.00102135 5770000000.00
FTSE 0.04729299 -0.10975239 12500000000.00
FTSE 0.16288156 0.10045805 4880000000.00
FTSE 0.08989279 -0.06276347 27700000000.00
FTSE 0.07680882 -0.08803214 27400000000.00
FTSE 0.20769466 -0.0470132 4790000000.00
FTSE 0.04307533 -0.18325813 4070000000.00
FTSE 0.14509246 -0.01058537 4620000000.00
FTSE -0.02186408 -0.26737436 109000000000.00
FTSE 0.11146413 -0.07675548 71100000000.00
FTSE 0.07847479 -0.11605606 4140000000.00
FTSE -0.05964502 0.07300342 10400000000.00
FTSE 0.10398397 -0.09067687 9790000000.00
FTSE -0.17916048 -0.28246555 5820000000.00
FTSE 0.01956689 -0.03305817 7640000000.00
FTSE 0.05897785 -0.14196594 33600000000.00
FTSE 0.15479256 0.00163822 4790000000.00
FTSE 0.16697913 0.00227827 30200000000.00
FTSE 0.03856039 0.11001067 9640000000.00
FTSE 0.03877916 -0.10168127 4580000000.00
FTSE 0.05883602 -0.04612705 80900000000.00
FTSE 0.11789063 0.10787102 8060000000.00
FTSE 0.12698572 0.03669521 27600000000.00
FTSE 0.15873931 0.2143452 23000000000.00
FTSE 0.28522219 -0.0068725 3720000000.00
FTSE -0.1281828 0.24657057 5810000000.00
FTSE -0.09270085 -0.00435828 66600000000.00
FTSE 0.07664005 -0.12242343 59300000000.00
FTSE 0.19070128 0.06347312 8460000000.00
FTSE 0.01974407 -0.10341113 4190000000.00
FTSE -0.05627301 -0.15612362 3910000000.00
FTSE -0.03858879 -0.19378105 122000000000.00
FTSE 0.08961254 -0.04549813 10400000000.00
FTSE -0.10441988 -0.08535951 21000000000.00
FTSE 0.1335024 -0.19340848 9800000000.00
FTSE 0.00489155 -0.59230323 8320000000.00
FTSE 0.08606308 -0.01540964 7270000000.00
FTSE 0.38035649 0.01156549 9390000000.00
FTSE 0.0295389 -0.09183005 4130000000.00
FTSE 0.01944164 0.09554694 5790000000.00
FTSE 0.09016313 -0.16710418 5180000000.00
FTSE 0.11783066 -0.05623458 15400000000.00
FTSE 0.08113128 -0.23430165 36100000000.00
FTSE 0.2805618 0.06532668 43100000000.00
FTSE 0.16594573 -0.12985017 6180000000.00
FTSE 0.03546714 -0.01318408 7220000000.00
FTSE 0.09190294 -0.03809389 38700000000.00
FTSE 0.04489596 -0.15635125 29000000000.00
FTSE 0.24513164 0.00418779 8800000000.00
FTSE 0.20924345 0.25239564 4700000000.00
FTSE -0.16824857 0.02862487 6800000000.00
FTSE 0.14500149 0.01145038 4630000000.00
FTSE 0.01432035 -0.03170077 35900000000.00
FTSE 0.00829842 0.0283209 41300000000.00
FTSE 0.07143323 -0.02654981 46900000000.00
FTSE 0.12821066 0.05113121 9370000000.00
FTSE 0.16608014 0.01163237 4950000000.00
FTSE 0.08179311 0.0844854 97900000000.00
FTSE -0.08453026 -0.78824784 9370000000.00
FTSE 0.09531839 -0.10955881 8360000000.00
FTSE -0.06170691 -0.00839241 6220000000.00
FTSE 0.13504213 0.0003906 6650000000.00
FTSE 0.183069 0.02373577 10000000000.00
FTSE 0.14154171 -0.0408922 7020000000.00
FTSE -0.01386419 -0.23606978 185000000000.00
FTSE 0.10845064 -0.01098958 4810000000.00
FTSE 0.09230072 -0.04972291 6500000000.00
FTSE 0.09750291 -0.08406704 10100000000.00
FTSE 0.15371717 0.10398446 8920000000.00
FTSE 0.12388337 0.01818139 18900000000.00
FTSE 0.06789274 -0.18443121 21200000000.00
FTSE 0.09116754 -0.01171798 6860000000.00
FTSE 0.15211998 -0.06687195 4260000000.00
FTSE 0.12789856 -0.04251734 18700000000.00
FTSE 0.0248559 0.00412313 109000000000.00
FTSE 0.10770006 -0.02287285 7170000000.00
FTSE 0.19403549 -0.08125428 4000000000.00
FTSE -0.0177998 -0.08403772 27500000000.00
FTSE 0.06555845 0.11991083 4870000000.00
FTSE 0.02461275 -0.19402171 6350000000.00
FTSE 0.10028261 -0.12487087 11000000000.00

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