The website is sensitive to decimals, sometimes it’s difficult to access what th

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The website is sensitive to decimals, sometimes it’s difficult to access what the answer is so plz show the entire process and define variables.

Some people think that the behavior of the stock market in January predicts its behavior for the rest of the year. Define the independent variable x to be the percent change in January and the dependent variable y to be the change in the index for the entire year. -5.57, y 8.43, s" = Calculation based on 39 years of data gives: - 1.13, s 12.9, 0.35 ROUND YOUR ANSWERS TO TWO DECIMAL PLACES (a). What proportion of the variation in yearly changes in the index is explained by its linear relationship with the change during January? (b). What is the equation of the least squares line for predicting full-year change from January change? f - License Points possible: 1 Unlimited attempts. Post this question to forum

Explanation / Answer

a) proportion of variation =r2 =0.1225

b) here slope b1=r*sy/sx=0.35*12.9/5.57=0.8106

and intercept bo=Ybar-b1*Xbar =8.43-0.8106*1.13=7.5140

therefore least square line : Yhat =7.5140+0.8106*x

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