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The LS regression equation of overseas and U.S. returns on common stocks for the period 2010-12018...

The LS regression equation of overseas and U.S. returns on common stocks for the period 2010-12018 is Y = 4.777 + 0.813X, and the regression R2 = 0.324

  • Find the correlation coefficient between the two variables.
  • In 2019, the return on U.S. stocks was 10.1%. Use the regression equation to predict the 2019 return on overseas stocks.
  • In 2019, the actual return on overseas stocks was 33.1%. What is the prediction error?
  • Give an interpretation of the R2.
Math   Statistics-And-Probability   
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