Question

The monthly returns for the period July 1996 to May 2001 for United Kingdom and

Australian index were recorded. Determine the regression line and interpret the coefficients.

Sample statistics,

n=59  SSx=0.0931  SSxy=0.04817  SSy=0.793

x̅ uk=0.008175  y̅aus=0.007891

Answer 1

Since we do not have additional information such as for SSxx and those for the initial data, X_i's, we cannot determine the regression line in this case.