Answer
4.739%
Work Step by Step
$ŷ =1.0997x+0.120$ (Problem 17 in Section 4.2)
For a rate of return of the S&P 500 of 4.2%, that is, $x=4.2$:
$ŷ =1.0997\times4.2+0.120=4.739$
Statistics: Informed Decisions Using Data (4th Edition)
by Sullivan III, Michael
Published by
Pearson
ISBN 10:
0321757270
ISBN 13:
978-0-32175-727-2
Chapter 14 - Section 14.2 - Assess Your Understanding - Applying the Concepts - Page 698: 13a
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