Question

The accompanying data represent the annual rates of return of two companies' stock for the past 12 years, Complete parts (a) through ) ll Click the icon to view the data table. (a) Draw a scatter diagram of the data treating the rate of return of Company 1 as the exp Data Table RR of Company 2 O RR of Company 2 YearRate of Return of Company 1 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0.203 0.310 0.267 0.195 -0.101 -0.130 -0.234 0.264 0.090 0.030 0.128 -0.035 Rate of Return of Company 2 0.398 0.510 0.410 0.526 -0.060 -0.161 -0.357 0.308 0.207 -0.014 0.093 0.027 -0.5 0.3 0.0 0.3 RR of Company 1 0.3 0.0 0.3 RR of Company 1 (b) Determine the correlation coefficient between rate of return of Company 1 and 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 b O No O Yes (d) Find the least-squares regression line treating the rate of return of Company 1 as the PrintDone y 1.5039x + 0.0336 y -1.5039x + 0.0336 Click to select your answer(s). Save for Later

Answer 1

As HOMEWORKLIB answering guideline i have answered the first four subparts only

a)

option c

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I hve used minitab software fro the rest parts

b) Steps

1. Enter the data
2. Stat-basic statistics-correlation
3. 
4. ok

minitab output

Hence the correlation is 0.945

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c) As there exists strong postive correlation hence there exists linear relation ship

YES

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d)Steps

1. Enter the data
2. Stat-regression-regression-fit regression model
3.   
4. ok

minitab output

the regression equation

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