answer all 3 questions with explanation

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 standard and Poor's 500 Index. The following information is available: = 22.6 20 =1 , = 25.4 20 =1 , 2 = 145.7 20 =1 , 2 = 180.5 20 =1 , = 150.5 20 =1

a. Compute the sample correlation coefficient and interpret your answer.

b. Test to determine the significance of the linear relationship between x and y.

c. Estimate the linear regression of Y on X, and interpret your results. Hence write the regression line and estimate Y when X is 8%.