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Homework: Ch 8 - Sampling Distributions Ques X Critical values of the correlation coefficient ars. Com X nt. Data table Critical Values for Correlation Coefficient

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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). Click here to view the data table. Click here to view the table of critical values of the correlation coefficient. -0.50- -0.50- 0.3 0.0 0.3 0.3 0.0 0.3 RR of Company 2 RR of Company 1 O C. O 0.30- 0.50- RR of Company 1 0.00- RR of Company 2 0.00 -0.30- -0.50 -0.5 0.0 0.5 -0.3 0.0 0.3 RR of Company 2 RR of Company 1 (b) Determine the correlation coefficient between rate of return of Company 1 and Company 2. The correlation coefficient is 0.966 (Round to three decimal places as needed.) (c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2? 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 (Round to four decimal places as needed.)

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