1. ( You run a regression of monthly returns of Textron, an industrial conglomerate, on the S&P s00 Index and get, the following output. Assuming the risk-free rate of return is 2.00% and the equity risk premium is 6.00%, answer the following questions Problem - top-down beta Regression Statistics Multiple R 0.7896703 R Square Adj R Square Standard Error 0.6235791 0.6170891 0.0613324 Observations 60 ANOVA Significance df SS MS 0.361431 96.08285 6.47407E-14 0.003762 Regression 0.361431 Residual 58 0.218176 Total 59 0.579607 Standard Upper 95 0.00 Coefficients t Stat P-value Lower 95% Error 0.008147 -0.870397 0.388 -0.0234 -0.0071 Intercept SP500 0.174231 9.802186 0.000 1.3591 2.0 1.7078 What is Textron's beta? What does beta represent? a. beta is the prstatititer of market risk. proparad What is the 99% confidence interval for Beta? b.

1. Sue is conducting a regression analysis to predict the amount of salaries expense using the number of employees and the average rate of pay. This type of regression analysis is called a(n) independent regression. linear regression. multiple regression. dependent regression.

If the R-squared for a regression model relating the outcome y to an explanatory variable x is 0.9. This implies that there is a positive linear relationship between y and x. True or false?

9. A wildlife researcher is interested in predicting a mammal’s lifespan (in years) based on its average number of hours of sleep per night.  Data was obtained from a large random sample of mammals, and the regression equation turned out as follows: Predicted lifespan = 36.93 – 1.64 (average hours of sleep) Which one of the following statements is a correct interpretation of this equation?   1. Approximately 1.64% of the variability in lifespan can be explained by the regression equation. 2. As lifespan increases by one year, average hours of sleep is predicted to decrease by 1.64 hours. 3. As lifespan increases by one year, average hours of sleep is predicted to increase by 36.93 hours. 4. As average hours of sleep increases by one hour, lifespan is predicted to increase by 36.93 years. 5. As average hours of sleep increases by one hour, lifespan is predicted to decrease by 1.64 years.