The resulting prediction equation is return 121 31 bmv 289


An article in a journal reports the results of a regression analysis of returns on stocks (Y) versus the ratio of book to market value (X). The resulting prediction equation is Return= 1.21 + 3.1 BMV (2.89) where the number in parentheses is the standard error of the slope estimate. The sample size used is n=18.

1) What is t-cal and t-critical?

2) Can you reject your null hypothesis? Is there evidence of a linear relationship between returns and book to market value?

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Business Management: The resulting prediction equation is return 121 31 bmv 289
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