In Order to Predict with 98% Confidence the Expected Value

question 37

Multiple Choice

In order to predict with 98% confidence the expected value of y for a given value of x in a simple linear regression problem, a random sample of 15 observations is taken. Which of the following t-table values listed below would be used?

• A) 1.350
• B) 1.771
• C) 2.160
• D) 2.650
• E) 1.750

---

Definitions:

T-Bills

Treasury Bills, short-term government securities with maturity periods of less than one year, considered as a safe investment.

Bull Markets

A financial market condition characterized by rising prices and investor optimism.

Information Ratio

A measure of a portfolio manager's performance and ability to generate excess returns relative to a benchmark, considering the volatility of those returns.