Use your results from the regression given in question 65 of Chap. 13 to test the significance of b via a t-test. Also construct a 90 % confidence interval for b.

Question 65 of Chap. 13

Use the data given in question 24 of Chap. 2 to estimate the regression coefficients for a regression of J&J’s current ratio on the pharmaceutical industry’s current ratio.

Question 24 of Chap. 2

You are given the following financial ratios for Johnson & Johnson and for the pharmaceutical industry:

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Year 79 80 81 82 83 84 85 86 87 88 Year 79 80 81 82 83 84 85 86 87 88 Current ratio Industry 2.30 2.29 2.18 2.12 2.12 2.09 2.19 1.91 1.86 1.93 ROA Industry .11 .11 .10 .11 .11 .10 .10 .10 .09 .12 J&J 2.73 2.55 2.50 2.50 2.66 2.41 2.47 1.40 1.86 1.88 J&J .12 .12 .12 .12 .11 .11 .12 .06 .13 .14 Inventory Turnover Industry 2.17 2.22 2.34 2.30 2.34 2.40 2.27 2.38 2.24 2.27 Pricelearnings Industry 12.04 15.03 28.02 15.19 14.56 14.88 17.98 23.46 35.09 15.98 J&J 2.71 2.70 2.78 2.38 2.28 2.37 2.45 2.33 2.27 2.32 J&J 13.76 15.35 14.79 17.79 15.90 13.14 15.66 35.47 15.50 14.88