In a regression of investment on the interest rate, the results in Table P-8 were observed over
Question:
a. Is the relationship between these variables significant?
b. Can an effective prediction equation be developed?
c. If the average interest rate is 4% five years from now, can yearly investment be forecast?
d. Calculate and interpret r2.
e. Discuss correlation and causation in this example.
Transcribed Image Text:
TABLE P-8 Yearly Invmnt Average Interest Yearly Investment Average Interest ($1,000s) Rate (%) (81,000s) Rate (%) 3.8 3.7 4.5 4.9 6.2 1,060 4.8 5.1 940 920 1.110 1590 2,050 2,070 2,030 1,780 1,420 5.1 4.8
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
The regression equation is Dollars 3538 418 Rate a There is a significant at the 5 level negative re...View the full answer
Answered By
Keziah Thiga
I am a self motivated financial professional knowledgeable in; preparation of financial reports, reconciling and managing accounts, maintaining cash flows, budgets, among other financial reports. I possess strong analytical skills with high attention to detail and accuracy. I am able to act quickly and effectively when dealing with challenging situations. I have the ability to form positive relationships with colleagues and I believe that team work is great key to performance. I always deliver quality, detailed, original (0% plagirism), well-researched and critically analyzed papers.
4.90+
1504+ Reviews
2898+ Question Solved
Related Book For
Question Posted:
Students also viewed these Statistics questions
-
In a regression of weight on height involving 51 students, 36 males and 15 females, the following regression results were obtained:15 1. 2. 3. where weight is in pounds, height is in inches, and...
-
You include the subject's height, measured in inches, and the same subject's height measured in feet in a regression of weight on height. Explain intuitively why ordinary least squares (OLS) cannot...
-
In a regression of average wages (W) on the number of employees (N) for a random sample of 30 firms, the following regression results were obtained a. How would you interpret the two regressions? b....
-
4. This problem investigates nearest neighbor and bilinear interpolation. For simplicity, we will focus on estimating the image intensity at a single location. Interpolation is used when transforming...
-
What are the functions of TFIIH?
-
The following input-output data were gathered at the end of Week 6 for a work center: a. Complete the input-output report. b. What was the planned objective? Was it met? c. What do you recommend?...
-
You recently received a letter offering a four-day vacation trip to Hawaii for only \($350\). The price includes transportation, a hotel room, and meals. To reserve a space, you must send \($175\)....
-
Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2012. Expenses for 2012 were: cost of goods sold $1,450,000; administrative expenses $212,000; selling expenses...
-
Please help me, with encoded or typed solution if possible thankyou. The statement of financial position of Pablo on December 31, 2020 shows the following: Debit Credit Cash 225,000 Accounts...
-
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2020: 1....
-
Information supplied by a mail-order business for 12 cities is shown in Table P-7. a. Determine the fitted regression line. b. Calculate the standard error of the estimate. c. Determine the ANOVA...
-
The ABC Investment Company is in the business of making bids on investments offered by various firms that want additional financing. ABC has tabulated its bids on the last 25 issues in terms of their...
-
An amino acid on a protein strand forms a hydrogen bond to another amino acid that is four amino acid units away. The next amino acid on the chain does the same, hydrogen-bonding to an amino acid...
-
List three (3) major influences on pricing decisions. Distinguish between price setters and price takers. Souls Productions is looking to produce a new machine expected to have a...
-
Project A has the following cash flows. 0 1 2 3 4 5 -60000 20000 20000 10000 40000 30000 Calculate the NPV, the IRR, the PVI, and the ARR for Project A. Enter your answers in the table below. The...
-
Find the solutions of x and y to the following pair of linear equations: 0 7x+ 3y 5 (mod 11) 4x +2y 3 (mod 11)
-
Discuss and explain three reasons that companies invest in debt and equity securities. whats your reaction about this discussion answer? The first reason why companies invest in debt and equity...
-
Assume you are the marketing director of a large multinational corporation that has just secured official sponsor status for the the 2018 FIFA World Cup also scheduled to be held in Russia. What...
-
Final exam grades are normally distributed with a mean of 81. The standard deviation is 3. What is the median grade?
-
5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly. 10. You deposit $300 each month...
-
Solve for the predicted values of y and the residuals for the data in Problem 12.9. The data are provided hereagain: Bond Rate Prime Interest Rate 5% 16% 12% 6% 9% 8% 15% 7% 4% 7%
-
In problem 12.10, you were asked to develop the equation of a regression model to predict the number of business bankruptcies by the number of firm births. Using this regression model and the data...
-
The equation of a regression line is y = 50.506 1.646x And the data are as follows. Solve for the residuals and graph a residual plot. Do these data seem to violate any of the assumptions...
-
[Chapter 11: Advanced Drawing Techniques] ADVANCED DRAWING TECHNIQUES PROBLEMS Name: Date: P11-1) Sketch in a complete auxiliary view in the space indicated. 11-25
-
182 Chapter 7 Conditioning Processes Conditioning materials changes their internal properties. For example, if a piece of steel is magnetized, the magnetiz- ing force makes the molecules of the steel...
-
DQuestion 1 Boxer Sugar Ray Leonard weighs 730 N and stands inside a room that measures 4 m x 5 m x 3 m. How does Sugar Ray's weight compare with the weight of the air in the room? O Sugar Ray's...
Study smarter with the SolutionInn App