SOLUTION: Given the following information for Least-squares regression line to predict the price of a certain stock (y) from the prime interest rate in percent (x).
y = a + bx
a = 2.04
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Question 847015: Given the following information for Least-squares regression line to predict the price of a certain stock (y) from the prime interest rate in percent (x).
y = a + bx
a = 2.04528
b = 0.4323287293
r^2 = 0.370434899
r = 0.6806336328
What is the correlation between the interest rate and the yield of the stock?
Question 5 options:
2.045
0.6806
0.4323
0.3704
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Given the following information for Least-squares regression line to predict the price of a certain stock (y) from the prime interest rate in percent (x).
y = a + bx
a = 2.04528
b = 0.4323287293
r^2 = 0.370434899
r = 0.6806336328
What is the correlation between the interest rate and the yield of the stock?
Question 5 options:
2.045
0.6806
0.4323
0.3704
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Ans: r = 0.6806 is the correlation coefficient
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Cheers,
Stan H.
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