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LOS 8.e: Calculate and interpret 1) a confidence               READING 8: MULTIPLE REGRESSION AND ISSUES IN REGRESSION ANALYSIS
     interval for the population value of a regression
     coefficient and 2) a predicted value for the                  MODULE 8.2: HYPOTHESIS TESTS AND CONFIDENCE INTERVALS
     dependent variable, given an estimated
     regression model and assumed values for the
     independent variables.


     PREDICTING THE DEPENDENT VARIABLE












        EXAMPLE: Calculating a predicted value for the dependent variable: An analyst would like to use the estimated regression
        equation from the previous example to calculate the predicted 10-year real earnings growth for the S&P 500, assuming the payout ratio
        of the index is 50%. He observes that the slope of the yield curve is currently 4%.



                                                                                           Meaning?



                                                                                          1.46% is our prediction of growth rate of real
                                                                                          earnings for the S&P 500 Given, given a 50%
                                                                                          payout ratio, and a slope of the yield curve at 4%,
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