The data in the accompanying table represent the rate of return of a certain com
ID: 3048714 • Letter: T
Question
The data in the accompanying table represent the rate of return of a certain company stock for 11 months, compared with the rate of return of a certain index of 500 stocks. Both are in percent. Complete parts (a) through (d) below. LOADING... Click the icon to view the data table. (a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of beta 0 and beta 1 . The estimate of beta 0 is nothing . (Round to four decimal places as needed.) Month Rates of return of the index, x Rates of return of the company stock, y Apr-07 4.33 3.28 May-07 3.25 5.09 Jun-07 negative 1.78 0.54 Jul-07 negative 3.20 2.88 Aug-07 1.29 2.69 Sept-07 3.58 7.41 Oct-07 1.48 negative 4.83 Nov-07 negative 4.40 negative 2.38 Dec-07 negative 0.86 2.37 Jan-08 negative 6.12 negative 4.27 Feb-08 negative 3.48 negative 3.77
Explanation / Answer
Answer:
The data in the accompanying table represent the rate of return of a certain company stock for 11 months, compared with the rate of return of a certain index of 500 stocks. Both are in percent. Complete parts (a) through (d) below. LOADING... Click the icon to view the data table. (a) Treating the rate of return of the index as the explanatory variable, x, use technology to determine the estimates of beta 0 and beta 1 .
The estimate of
beta 0 is 1.2286
beta 1 is 0.7622
x
y
4.33
3.28
3.25
5.09
-1.78
0.54
-3.2
2.88
1.29
2.69
3.58
7.41
1.48
-4.83
-4.4
-2.38
-0.86
2.37
-6.12
-4.27
-3.48
-3.77
Regression Analysis
r²
0.438
n
11
r
0.662
k
1
Std. Error
3.231
Dep. Var.
y
ANOVA table
Source
SS
df
MS
F
p-value
Regression
73.1270
1
73.1270
7.01
.0266
Residual
93.9457
9
10.4384
Total
167.0727
10
Regression output
confidence interval
variables
coefficients
std. error
t (df=9)
p-value
95% lower
95% upper
Intercept
1.2286
0.9863
1.246
.2444
-1.0027
3.4599
x
0.7622
0.2880
2.647
.0266
0.1108
1.4136
x
y
4.33
3.28
3.25
5.09
-1.78
0.54
-3.2
2.88
1.29
2.69
3.58
7.41
1.48
-4.83
-4.4
-2.38
-0.86
2.37
-6.12
-4.27
-3.48
-3.77
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