The first table below contains the regression results for a regression with monthly returns on a large-cap mutual fund as the dependent variable and monthly returns on a market index as the independent variable. The analysis is performed using only 12 monthly returns (in percent). The second table provides summary statistics for the dependent and independent variables.
A. What is the predicted return on the large-cap mutual fund for a market index return of 8.00 percent?
B. Find a 95 percent prediction interval for the expected mutual fund return.
Regression Statistics
Multiple R.............................0.776
R-squared.............................0.602
Standard error........................4.243
Observations..........................12

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Coefficients Standard Error t-Statistic p-Value 0.831 Intercept Slope coefficient 1.314 -0.287 -0.219 3.890 0.003 0.802 0.206 Large-Cap Fund Return Statistic Market Index Return 2.30% Mean Standard deviation 1.56% 6.41% 6.21% 38.51 41.13 Variance Count 12 12