Quant Study Session 3 reading 9 CFA end of the chapter question

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thegangsterle

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I dont understand the solution to the CFA Level 2 Ethical and Professional Standards, Quantitative Methods, and Economics: Study Session 3: Reading 9: end of the chapter question 9b.
The first table below contains the regression results for a regression with monthly returns on a large-cap mutual fund as the dependent variable and monthly returns on a market index as the independent variable. The analysis is performed using only 12 monthly returns (in percent). The second table provides summary statistics for the dependent and independent variables.
  1. What is the predicted return on the large-cap mutual fund for a market index return of 8.00 percent?
  2. Find a 95 percent prediction interval for the expected mutual fund return.
The solution doesn’t make sense. I thought the confidence interval = point estimate +- (varability factor * reliability factor) where the reliability factor is the t-value and the varability factor is the standard error. Please help. Thank you,
 
The standard error is the variability factor for the regression coefficient. Here, you’re looking for the variability factor for the dependent variable – sf – which is a bit more complicated:
sf² = s²[1 + 1/n + (X − X-bar)²/((n – 1)sx²]
 
Thank you. I guess i mistaken confidence interval with predication interval.
 
Question 11c from the same study session. Can anyone explain the answer? In other words, provide an interpretation to summation( y - y mean)*(x - x mean) / ( summation x - x mean) squared.
 
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