THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 200

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose that you are interested in the relationship between the return rate on a stock in 2010 compared to the return rate in 2009.You believe that the return rates in both years are positively correlated.A sample of 15 stocks yields the following regression results: b₀= 5.3,b₁= 1.04,s
= 1.79,s
= 0.2163,R² = 0.64,and MSE = 35.4.
-How would you explain the slope coefficient b₁?

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Definitions:

Agricultural Adjustment Act

A U.S. federal law enacted in 1933 as part of the New Deal, aiming to boost agricultural prices by reducing surpluses.

Constitutional

Relating to, or according with a constitution, which is a set of fundamental principles or established precedents governing a state or other organization.

Conservative Opposition

Political or ideological opposition based on conserving traditional institutions, values, and practices against more liberal or progressive changes.

Second New Deal

A series of programs and reforms introduced by President Franklin D. Roosevelt in the 1930s aimed at economic recovery and social welfare improvements during the Great Depression.