I included all of the relevant information.
exVIGRX = b0 + b1(exS&P) + e
n = 36
Coefficient - Coefficient Estimate - Standard Error
b0 - 0.0023 - 0.0022
b1 - 1.1163 - 0.0624
RSS = 0.0228
SSE = 0.0024
Coldplay forecasts the excess return on the S&P 500 for June 2007 to be 5% and the 95% confidence interval for the predicted value of the excess return on the VIGRX for June 2007 to be 3.9% to 7.7%. The standard error of the forecast is closest to:
A. 0.0080
B. 0.0083
C. 0.0111
Could you walk me through how you solve this problem? I want to see how you guys approach this and then I’ll give the answer and the explanation and, if I still need to, explain what I’m having an issue with.
Thanks!
