The accompanying data represent the annual rates of return of two companies stock for the...

50.1K

Verified Solution

Question

Statistics

image

The accompanying data represent the annual rates of return of two companies stock for the past 12 years Complete parts a through k Click here to view the data table Click here to view the table of critical values of the correlation coefficient O C a Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable Choose the correct graph below O A RR of Company 1 RR of Company 2 0 50 0 00 OYes O No 0 50 0 3 0 0 0 3 RR of Company 2 0 50 0 00 0 50 0 3 0 0 RR of Company 1 0 3 Q point s CICCOB O Above average O Below average The rate of return of Company 2 will be Round to four decimal places as needed OB SOD RR of Company 2 RR of Company 1 0 50 0 00 0 50 0 3 0 30 0 00 0 30 0 0 RR of Company 1 0 3 0 5 0 0 0 5 RR of Company 2 b Determine the correlation coefficient between rate of return of Company 1 and Company 2 The correlation coefficient is Round to three decimal places as needed c Based on the scatter diagram and correlation coefficient is there a linear relation between rate of return of Company 1 and Company 2 Q d Find the least squares regression line treating the rate of return of Company 1 as the explanatory variable y x 0 Round to four decimal places as needed e Predict the rate of return of Company 2 if the rate of return of Company 1 is 0 15 15 f If the actual rate of return for Company 2 was 29 0 when the rate of return of Company 1 was 15 was the performance of Company 2 above or below average among all years the returns of Company 1 were 15 g Interpret the slope For each percentage point increase in the rate of return for Company 1 the rate of return of Company 2 will

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students