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

question 80

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 1980, 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.
$\begin{array}{llc}\hline \text { Firm } & \text { Estimated Market Model } & \text { Estimated Standard Error of } \beta 1 \\\hline \text { Company A } & y=.0010+1.40 x & .03 \\\text { Company B } & y=.0005-1.21 x & .06 \\\text { Company C } & y=.0010+1.62 x & 1.34 \\\text { Company D } & y=.0013+.76 x & .15 \\\hline\end{array}$

For which of the three stocks, Companies B, C, or D, is there evidence (at $\alpha = .05$ ) of a positive lineal relationship between $y$ and $x$ ?

• A) Company D only
• B) Companies B and D only
• C) Company C only
• D) Companies B and C only

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Customer Value Proposition

A business or marketing statement that describes why a customer should buy a product or use a service, highlighting the distinct value.

Points of Difference

Unique attributes or benefits that set a product, service, or brand apart from its competitors in the eyes of the target market.

Competitive Substitutes

Products or services that can be used as replacements for another due to similarities in function or utility, creating options for consumers.

Core Benefit Propositions

The fundamental value or advantage that a product or service offers to customers, addressing their needs or solving their problems.