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

Question 847016: 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

Predict the price of the stock when the prime interest rate is 5%
Question 6 options:

4.21

- 0.998

5.088

10.657

Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

in percent (x)... 

y(5) =  2.04528 +  0.4323287293(5) = 4.210  0r 4.21

Note: 2.045 + .432*5 = 4.205  0r  4.21 

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