This topic contains a solution. Click here to go to the answer

Author Question: Consider the following model y = 0 + 1x + , where y is the daily rate of return of a stock, and x is ... (Read 44 times)

craiczarry

  • Hero Member
  • *****
  • Posts: 527

Question 1

An academic advisor wants to predict the typical starting salary of a graduate at a top business school using the GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT using 25 data points is shown below.

0 = -92040  1 = 228  s = 3213   df = 23 t = 6.67

Set up the null and alternative hypotheses for testing whether a linear relationship exists between SALARY and GMAT.
H0: β1 = 0 vs. Ha: β1 ≠ 0
H0: β1 = 0 vs. Ha: β1 > 0
H0: β1 > 0 vs. Ha: β1 < 0
H0: 1 = 228 vs. Ha: 1 > 228

Question 2

Consider the following model y = β0 + β1x + , where y is the daily rate of return of a stock, and x is the daily rate of return of the stock market as a whole, measured by the daily rate of return of Standard & Poor's (S&P) 500 Composite Index. Using a random sample of n = 12 days from 2007, the least squares lines shown in the table below were obtained for four firms. The estimated standard error of 1 is shown to the right of each least squares prediction equation.
FirmEstimated Market ModelEstimated Standard Error of β1
Company Ay = .0010 + 1.40x.03
Company By = .0005 - 1.21x.06
Company Cy = .0010 + 1.62x1.34
Company Dy = .0013 + .76x.15
Calculate the test statistic for determining whether the market model is useful for predicting daily rate of return of Company A's stock.
◦ 46.7
◦ 1.40
◦ 161.6
◦ 1.40 ± .067


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by craiczarry on Feb 14, 2020

mammy1697

  • Sr. Member
  • ****
  • Posts: 341
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 35% of students answer this correctly




craiczarry

  • Member
  • Posts: 527
Reply 2 on: Feb 14, 2020
Great answer, keep it coming :)


hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

For a complete list of videos, visit our video library