Given Below Are Five Observations Collected in a Regression Study $\alpha$

question 139

Essay

Given below are five observations collected in a regression study on two variables x (independent variable)and y (dependent variable).

a.Develop the least squares estimated regression equation
b.At 95% confidence,perform a t test and determine whether or not the slope is significantly different from zero.
c.Perform an F test to determine whether or not the model is significant.Let $\alpha$ = 0.05.
d.Compute the coefficient of determination.
e.Compute the coefficient of correlation.

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Definitions:

Coupon Rate

The interest rate stipulated on a bond’s certificate, paid to its holder at specified intervals until maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime, accounting for interest payments and price changes.

Modified Duration

A formula that predicts the change in a bond's price for a 1% change in interest rates, considering the bond's yield to maturity.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 0.01%.