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Over the past 30 years, the sample standard deviations of the rates of return for stock X and Stock Y were 0.20 and 0.12, respectively. The sample covariance between the returns of X and Y is 0.0096.The correlation of the rates of return between X and Y is closestto: 0.40Over the past 30 years, the sample standard deviations of the rates of return for stock X and Stock Y were 0.20 and 0.12, respectively. The sample covariance between the returns of X and Y is 0.0096.In order to determine whether the correlation coefficient is significantly different from zero, the appropriate hypotheses are:
Stock Y were 0.20 and 0.12, respectively. The sample covariance between the returns of X and Y is 0.0096.Refer to Exhibit 14-1. When testing whether the correlation coefficient differs from zero, the value of the test statistic is . At the 5% significance level, the critical value is. The conclusion to the hypothesis test is to: Reject Learning Objective: 14-02 Discuss the limitations of correlation analysisSimple linear regression analysis differs from multiple regression analysis in that:Simple linear Learning Objective: 14-04 Estimate the multiple linear regression model and interpret the coefficientsA regression equation was estimated as . If and , the predicted value of ywould be: 29. Given the augmented Phillips model: , where y= actual rate of inflation (%), x1= unemployment rate (%), and x2= anticipated inflation rate (%). The response variable(s) in this model is(are) the: Actual inflation rate The explanatory variable(s) in this model is(are) the: Unemployment rate and anticipated inflationWhich of the following is nottrue of the standard error of the estimate? It can take on negative The standard error of the estimate measures :the variability of the observed The standard error of the estimate measures :the standard deviation of the residuals.Consider the sample regression equation: . When x1increases 1 unit and x2increases 2 units, while x3and x4remain unchanged, what change would you expectin the predicted y
Learning Objective: 14-05 Calculate and interpret the standard error of the estimate