An economist at Nedbank ran a study of the relationship between FTSE/JSE All Shares index return (JALSH) and consumer price index (CPI) from 2006 to 2017, the data collected is shown in the Table 1 below.  FTSE/JSE All Shares index return (JALSH) and consumer price index (CPI) from 2006 to 2017.    Year     JALSH (Y)     CPI (X)       2006     0.41     4.7       2007     0.19     7.1       2008     -0.23     11.5       2009     0.32     7.1       2010     0.19     4.3       2011     0.03     5.0       2012     0.27     5.6       2013     0.21     5.7       2014     0.11     6.1       2015     0.05     4.6       2016     0.00     6.4       2017     0.21     5.3       The estimated regression equation with dependent variable FTSE/JSE All Shares index return (JALSH) and independent variable consumer price index (CPI) was  ^JALSH = ^B0 + ^B1CPIi   calculate B0 and B1

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An economist at Nedbank ran a study of the relationship between FTSE/JSE All Shares index return (JALSH) and consumer price index (CPI) from 2006 to 2017, the data collected is shown in the Table 1 below. 

FTSE/JSE All Shares index return (JALSH) and consumer price index (CPI) from 2006 to 2017. 

 

Year 

 

 JALSH (Y) 

 

 CPI (X) 

 

  

2006 

 

 0.41 

 

 4.7 

 

  

2007 

 

 0.19 

 

 7.1 

 

  

2008 

 

 -0.23 

 

 11.5 

 

  

2009 

 

 0.32 

 

 7.1 

 

  

2010 

 

 0.19 

 

 4.3 

 

  

2011 

 

 0.03 

 

 5.0 

 

  

2012 

 

 0.27 

 

 5.6 

 

  

2013 

 

 0.21 

 

 5.7 

 

  

2014 

 

 0.11 

 

 6.1 

 

  

2015 

 

 0.05 

 

 4.6 

 

  

2016 

 

 0.00 

 

 6.4 

 

  

2017 

 

 0.21 

 

 5.3 

 

  

The estimated regression equation with dependent variable FTSE/JSE All Shares index return (JALSH) and independent variable consumer price index (CPI) was 

^JALSH = ^B0 + ^B1CPIi

 

calculate B0 and B1

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