I don't understand

AI & Machine learning
1

Course Name: Trading with Machine Learning: Regression, Section No: 4, Unit No: 10, Unit type: Quiz





I don't understand how the result is calculated 

2

Hi Hsi,



Considering Yi = B0 + B1*Xi and S&P500 is the independent variable, the question asks for Y if S&P500(X) is 4%. To find the answer, you should calculate B0 and B1. You can review the document in section 4, unit 9, to calculate these coefficients by using covariance and variance of X (you will also find B0 and B1 already calculated in the document). 



Hope this helps.