Chapter 3 Case Study (Continued). Use the following information for Exercises 65–68. Shown here is the regression equation for the linear relationship between the randomly selected Darts portfolio and the Dow Jones Industrial Average (DJIA), from the Chapter 3 Case Study. (Note: This is for the entire data set, not the small sample taken in the Exercise 39 data set.)

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Question 4.164

66. In this exercise, we look at the slope and the regression equation.

  1. Find and interpret the meaning of the value of the slope coefficient, as the DJIA increases.
  2. Write the regression equation. Now state in words what the regression equation means.
  3. Is the correlation coefficient positive or negative? How do we know?