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Hi, in addition to a), there are multiple parts to the question: b) Assuming the residuals are normally distributed, test whether a linear relation exists
Hi, in addition to a), there are multiple parts to the question: b) Assuming the residuals are normally distributed, test whether a linear relation exists between the rate of return of the index x, and the rate of return for the company stock, y, at the alpha=0.50 level of significance. c) Find the P-value, and specify whether to reject/not reject H0 d) Construct a 90% confidence interval for the slope for the true least-squares regression line. Lower bound: Higher bound: e) What is the mean rate of return for the company stock if the rate of return of the index is 3.55%? Thank you very much.
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