Question

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   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Returns on common stocks in the United States and overseas appear to be growing more closely...
Returns on common stocks in the United States and overseas appear to be growing more closely correlated as economies become more interdependent. Suppose that the following population regression line connects the total annual returns (in percent) on two indexes of stock prices: MEAN OVERSEAS RETURN = −0.08 + 0.30 ✕ U.S. RETURN (A)What is β0 in this line? β0 is the population intercept, −0.08 .β0 is the population slope, 0.30.   β0 is the population intercept, 0.30. β0 is the population...
Returns on common stocks in the United States and overseas appear to be growing more closely...
Returns on common stocks in the United States and overseas appear to be growing more closely correlated as economies become more interdependent. Suppose that the following population regression line connects the total annual returns (in percent) on two indexes of stock prices: MEAN OVERSEAS RETURN = −0.08 + 0.30 ✕ U.S. RETURN (a) What is β0 in this line? β0 is the population slope, −0.08. β0 is the population intercept, −0.08.     β0 is the population intercept, 0.30. β0 is the...
Returns on common stocks in the United States and overseas appear to be growing more closely...
Returns on common stocks in the United States and overseas appear to be growing more closely correlated as economies become more interdependent. Suppose that the following population regression line connects the total annual returns (in percent) on two indexes of stock prices: MEAN OVERSEAS RETURN = −0.07 + 0.20 ✕ U.S. RETURN (a) What is β0 in this line? β0 is the population slope, −0.07.β0 is the population slope, 0.20.     β0 is the population intercept, −0.07.β0 is the population intercept, 0.20....
Regression analysis procedures have as their primary purpose the development of an equation that can be...
Regression analysis procedures have as their primary purpose the development of an equation that can be used for predicting values on some DV for all members of a population. T F A secondary purpose is to use regression analysis as a means of explaining causal relationships among variables. T F In order to make predictions, three important facts about the regression line must be known. One of them is: The point at which the line crosses the X-axis. T F...
Model Summary Model R R Square Adjusted R Square      Std. Error of the Estimate 1...
Model Summary Model R R Square Adjusted R Square      Std. Error of the Estimate 1 .816 .666 .629 1.23721 a. Predictors: (Constant),x         ANOVA     Model Sum of Squares df Mean Square F                       Sig Regression Residual Total 27.500 13.776 41.276 1 9 10 27.500 1.531 17.966                 .002b                    a. Dependent Variable: Y                    b. Predictors: (Constant), X Coefficients Model Understand Coefficients B               Std Error Standardized Coefficients      Beta t Sig 1 (Constant)        x 3.001             1.125 .500                 .118 .816 2.667...
A multiple regression was run to explain CEO compensation (in $ per year) of major Northwest...
A multiple regression was run to explain CEO compensation (in $ per year) of major Northwest firms using three explanatory variables: the number of Employees, MarketCap (market capitalization in $thousands), and NetIncome (in $thousands). The prediction equation was CEOComp = 6,260,416 + 29.167*Employees - 0.06309*MarketCap + 2.5617*NetIncome          Furthermore, the F-test had F = 7.32 with a p-value of 0.000333, the t-test for Employees had a p-value of 0.208, the t-test for MarketCap had a p-value of 0.040, and the...
Consider the following results of a multiple regression model of dollar price of unleaded gas (dependent...
Consider the following results of a multiple regression model of dollar price of unleaded gas (dependent variable) and a set of independent variables: price of crude oil, value of S&P500, price U.S. Dollars against Euros, personal disposal income (in million of dollars) : Coefficient t-statistics Intercept 0.5871 68.90 Crude Oil 0.0651 32.89 S&P 500 -0.0020 18.09 Price of $ -0.0415 14.20 PDI 0.0001 17.32 R-Square = 97% What will be forecasted price of unleaded gas if the value of independent...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT