Consider the Following Model $y = \beta _ { 0 } + \beta _ { 1 } x + \epsilon$

question 66

Multiple Choice

Consider the following model $y = \beta _ { 0 } + \beta _ { 1 } x + \epsilon$ , where $y$ is the daily rate of return of a stock, and $x$ is the daily rate of return of the stock market as a whole, measured by the daily rate of return of Standard \& Poor's (S\&P) 500 Composite Index. Using a random sample of $n = 12$ days from 2007, the least squares lines shown in the table below were obtained for four firms. The estimated standard error of $\hat { \beta } _ { 1 }$ is shown to the right of each least squares prediction equation.
$\begin{array}{llc}\hline \text { Firm } & \text { Estimated Market Model } & \text { Estimated Standard Error of } \beta 1 \\\hline \text { Company A } & y=.0010+1.40 x & .03 \\\text { Company B } & y=.0005-1.21 x & .06 \\\text { Company C } & y=.0010+1.62 x & 1.34 \\\text { Company D } & y=.0013+.76 x & .15 \\\hline\end{array}$

Calculate the test statistic for determining whether the market model is useful for predicting daily rate of return of Company A's stock.

• A) \(161.6\)
• B) \(1.40 \pm .067\)
• C) \(46.7\)
• D) \(1.40\)

Understand the intergenerational transmission of abusive behaviors.

Recognize the role of risk factors in child development and the concept of familism.

Grasp the benefits of high-quality child-care programs on children from low socioeconomic backgrounds.

Understand the impact of maternal factors on child development.

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Definitions:

Using Force

The application of physical power or violence to achieve an objective, often associated with military action or law enforcement tactics.

Plessy V. Ferguson

U.S. Supreme Court decision supporting the legality of Jim Crow laws that permitted or required “separate but equal” facilities for blacks and whites.

Dissenting Justice

A judge or justice of a higher court, such as the Supreme Court, who disagrees with the majority's decision and expresses this dissent in a separate opinion.