THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose that you are interested in the relationship between the return rate on a stock in 2010 compared to the return rate in 2009.You believe that the return rates in both years are positively correlated.A sample of 15 stocks yields the following regression results: b₀= 5.3,b₁= 1.04,s
= 1.79,s
= 0.2163,R² = 0.64,and MSE = 35.4.
-How would you explain the slope coefficient b₁?

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose that you are interested in the relationship between the return rate on a stock in 2010 compared to the return rate in 2009.You believe that the return rates in both years are positively correlated.A sample of 15 stocks yields the following regression results: b₀= 5.3,b₁= 1.04,s

= 1.79,s

= 0.2163,R² = 0.64,and MSE = 35.4.
-How would you explain the slope coefficient b₁?

Quizplus · Accepted Answer

The Answer of THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: Suppose that you are interested in the relationship between the return rate on a stock in 2010 compared to the return rate in 2009.You believe that the return rates in both years are positively correlated.A sample of 15 stocks yields the following regression results: b 0 = 5.3,b 1 = 1.04,s = 1.79,s = 0.2163,R 2 = 0.64,and MSE = 35.4. -How would you explain the slope coefficient b₁?