11.45 For a sample of 20 monthly observations, a financial analyst wants to regress the percentage rate of return

(Y) of the common stock of a corporation on the percentage rate of return (X) of the Standard & Poor’s 500 index. The following information is available:

a 20 i=1 yi = 22.6 a 20 i=1 xi = 25.4 a 20 i=1 x2i

= 145.7 a

20 i=1 xiyi = 150.5 a 20 i=1 y2i

= 196.2

a. Test the null hypothesis that the slope of the population regression line is 0 against the alternative that it is positive.

b. Test against the two-sided alternative the null hypothesis that the slope of the population regression line is 1.