please show work and will thumbs up. Some people think that the behavior of the

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please show work and will thumbs up.

Some people think that the behavior of the stock market in January predicts its behavior for the rest of the year. Let the explanatory variable be the percent change in a stock market index in January. Let the response variable be the percent change in the stock market index for the entire year. You have a data set with 50 cases (where each case is a calendar year. Based on this data, you have the following statistics: mean of the x-variable: 2.10% standard devation ofthex-variable: 7.90% mean of the y-variable: 8.25% standard devation of the y-variable: 19.95% correlation between the two variables: 0.596 What is the y-axis intercept of the regression line? Enter your answer to 2 decimal places in percent format; do not type the symbol. (Observe that if you leave the means and standard deviations in percent format when you carry out your calculations, then your final answer will be in percent format.) If the intercept is negative, include the minus sign.

Explanation / Answer

Let regression line be y = mx + b

Slode of the regression line, m = r * Sy/Sx = 0.596 *19.95/7.90 = 1.505

Putting y = mean of y-variable and x= mean of x variable

8.25 = 1.505 * 2.10 +b

or b = 8.25-3.1605 = 5.0895

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