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An analyst studies the turnover of a company over ten years. Let x be the number of years after the first year the analyst looks

An analyst studies the turnover of a company over ten years. Let x be the number of years after the first year the analyst looks at. Y is the turnover in year x and the analyst assumes that the turnover is a normally distributed stochastic variable with expectation E (Y) = 0 + 1x and standard deviation  = 0.15. Based on the observations, the analyst finds that: x = 3.6 and y = 4.57 M = 9i = 0 (xi  x) 2 = 7.44, 9i = 0 (xi  x) yi = 4.98 1. Estimate 0 and 1 2. Can it be shown that the annual turnover increase, 1, is greater than 0.5? Formulate appropriate hypotheses and perform the hypothesis test at 0.5% significance level. 3. Find a 90% confidence interval for expected sales for x = 4. Lower confidence limit Upper confidence limit 4. Find a 90% prediction interval for turnover for x = 5 Lower confidence limit Upper confidence limit 

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