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. The standard deviation of the S&P 500 returns for these years is 19.99%. From this and yourwork in the previous exercise, find the standard error for the least-squares slope b1. Give a 90% confidence interval for the slope β1 of the population regression line.
Corporate reputation and profitability. Is a company’s reputation (a subjective assessment) related to objective measures of corporate performance such as its profitability? One study of this relationship examined the records of 154 Fortune 500
firms.18 Corporate reputation was measured on a scale of 1 to 10 by a Fortune magazine survey. Profitability was defined as
the rate of return on invested capital. Figure 10.19 contains SAS output for the regression of profitability (PROFIT) on reputation score (REPUTAT). The format is very similar to the Excel and Minitab output we have seen, with minor differences in labels. Exercises 10.65 to 10.72 concern this study. You can take it as given that examination of the data shows no serious violations of the conditions required for regression inference.
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