Homework: Ch 8 - Sampling Distributions Ques X Critical values of the correlation coefficient ars. Com X nt. Data table Critical Values for Correlation Coefficient 3 0.997 4 |0.950 5 0.878 Year Rate of Return of Company Rate of Return of Company ble. Choo 6 0.811 2 7 0.754 2007 0.203 0.402 8 |0.707 2008 0.310 0.510 9 0.666 2009 0.267 0.410 10 0.632 2010 0.195 0.426 11 0.602 2011 - 0.101 - 0.060 12 0.576 13 0.553 2012 -0.130 - 0.151 14 0.532 2013 - 0.234 - 0.357 15 0.514 2014 0.264 0.328 16 0.497 2015 0.090 0.207 17 0.482 2016 0.030 -0.014 18 0.468 2017 0.128 19 0.456 0.113 20 0.444 2018 - 0.035 0.027 21 0.433 22 0.423 23 0.413 24 0.404 25 0.396 Print Done 26 0.388 27 0.381 The correlation coencient is- (Round to three decimal places as needed.) Print DoneThe accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). (c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2? CV Yes O No (d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable. y= 1.4795 x + 0.0317 (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 0.2 (20%). The rate of return of Company 2 will be 0.3276 . (Round to four decimal places as needed.) (f) If the actual rate of return for Company 2 was 27.5% when the rate of return of Company 1 was 20%, was the performance of Company 2 above or below average among all years the returns of Company 1 were 20%? O Above average Below average (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 increase by about 1.48 percentage points, on average. (Round to two decimal places as needed.) (h) Interpret the y-intercept. O A. The y-intercept indicates that the rate of return for Company 2 will be when the rate of return for Company 1 is 0. (Round to four decimal places as needed.) O B. The y-intercept indicates that the rate of return for Company 1 will be when the rate of return for Company 2 is 0. (Round to four decimal places as needed.) O C. There is no meaningful interpretation for the intercept