Question: Using the data in Problem 70, construct a 95 % confidence interval for b. Is it possible for the true b to be negative? Problem

Using the data in Problem 70, construct a 95 % confidence interval for

b. Is it possible for the true b to be negative?

Problem 70

It is of interest to find the relationship between the monthly closing stock prices of IBM (y; unit: $10) and the closing indices of Dow Jones Industrial Average (x; unit 100). Year/month 2010/1 2010/2 2010/3 2010/4 2010/5 2010/6 2010/7 2010/8 2010/9 2010/10 2010/11

Estimate the slope of the regression of the monthly closing prices of IBM against those of DJIA

Year/month 2010/1 2010/2 2010/3 2010/4 2010/5 2010/6 2010/7 2010/8 2010/9 2010/10 2010/11 2010/12 2011/1 2011/2 2011/3 2011/4 2011/5 2011/6 2011/7 2011/8 2011/9 2011/10 2011/11 2011/12 IMB 117.64 122.77 123.82 124.54 121.55 119.83 124.6 120.08 130.82 140.04 138.57 143.76 158.69 159.2 160.37 167.75 166.87 169.46 179.64 170.56 173.49 183.18 187.27 183.17 DJIA 10,067.33 10,325.26 10,856.63 11,008.61 10,136.63 9,774.02 10,465.94 10,014.72 10,788.05 11,118.40 11,006.02 11,577.51 11,891.93 12,226.34 12,319.73 12,810.54 12,569.79 12,414.34 12,143.24 11,613.53 10,913.38 11,955.01 12,045.68 12,217.56

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