The accompanying data represent the annual rates of return of two companies stock for the...
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The accompanying data represent the annual rates of return of two companies stock for the past 12 years Complete parts a through k Click here to view the data table Click here to view the table of critical values of the correlation coefficient O C a Draw a scatter diagram of the data treating the rate of return of Company 1 as the explanatory variable Choose the correct graph below O A RR of Company 1 RR of Company 2 0 50 0 00 OYes O No 0 50 0 3 0 0 0 3 RR of Company 2 0 50 0 00 0 50 0 3 0 0 RR of Company 1 0 3 Q point s CICCOB O Above average O Below average The rate of return of Company 2 will be Round to four decimal places as needed OB SOD RR of Company 2 RR of Company 1 0 50 0 00 0 50 0 3 0 30 0 00 0 30 0 0 RR of Company 1 0 3 0 5 0 0 0 5 RR of Company 2 b Determine the correlation coefficient between rate of return of Company 1 and Company 2 The correlation coefficient is Round to three decimal places as needed c Based on the scatter diagram and correlation coefficient is there a linear relation between rate of return of Company 1 and Company 2 Q d Find the least squares regression line treating the rate of return of Company 1 as the explanatory variable y x 0 Round to four decimal places as needed e Predict the rate of return of Company 2 if the rate of return of Company 1 is 0 15 15 f If the actual rate of return for Company 2 was 29 0 when the rate of return of Company 1 was 15 was the performance of Company 2 above or below average among all years the returns of Company 1 were 15 g Interpret the slope For each percentage point increase in the rate of return for Company 1 the rate of return of Company 2 will
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