Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 14 - Section 14.1 - Assess Your Understanding - Applying the Concepts - Page 690: 17a

Answer

$β_0=0.120$ $β_1=1.0997$

Work Step by Step

In MINITAB, enter the Rate of Return of S&P 500 values in C1 and in C2 enter the Rate of Return in United Technologies values. Select Stats -> Regression -> Regression -> Fit Regression Model Enter C2 in "Responses" and C1 in "Continuous Predictors" The least-squares regression line ($ŷ =b_1x+b_0$) will be shown in "Regression Equation", where C2 is ŷ (Rate of Return in United Technologies values) and C1 is x (Rate of Return of S&P 500) $ŷ =1.0997x+0.120$ That is: $b_0=0.120$ and $b_1=1.0997$ $b_0$ is the estimate for $β_0$ and $b_1$ is the estimate for $β_1$.
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